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California-based IndyMac Bank has collapsed amid a growing credit crisis. Federal regulators seized the bank’s assets, fearing it might not be able to meet withdrawals by depositors.     It is the second-largest financial institution to fail in US history, regulators say.     The failure came on a day when shares in the two… Continue reading CA’s IndyMac Collapses

Sunday evening the U.S. Treasury Department and Federal Reserve outlined a comprehensive government plan to implement sweeping measures to shore up troubled mortgage lenders Freddie Mac and Fannie Mae. On Monday, in initial trading the rescue plan helped calm markets.     And, in a key test of confidence, Freddie Mac’s $3 billion bill sale… Continue reading Treasury and Fed Outline Plan to Bolster Fannie and Freddie, Calm Markets

The U.S. Federal Reserve on Monday unveiled long-awaited final mortgage rules to ban misleading and deceptive practices, including prepayment penalties for many subprime loans.     “The proposed final rules we will discuss today are intended to protect consumers from unfair or deceptive acts and practices in mortgage lending, while keeping credit available to qualified… Continue reading Fed Prepares to Tighten Lending Rules

Gov. Marc Racicot, president of the American Insurance Association (AIA), issued a statement on Thursday supporting the start of a series of hearings in the House Financial Services Committee aimed at examining the regulatory structure of financial services markets. Gov. Racicot’s comment follows: “Given the recent turmoil in the financial markets, Chairman Frank’s and the… Continue reading AIA Welcomes Congressional Examination of Financial Services Regulation

Congress on Thursday approved legislation, the Community Building Code Administration Grant Act, that would create a national program to encourage local governments to administer and enforce building codes. The bill would require the federal government to award matching grants to local governments for, among other things, staff development and capital expenditures dedicated to administering building… Continue reading The House Approves Building Code Legislation

The state’s third-largest home insurer, Allstate Insurance Corp., was ordered yesterday to cut its homeowners rates by 28.5 percent in one of the deepest rate cuts ever required by the state Department of Insurance. The rate change, totaling $255 million, will lead to an average annual reduction of $243 for 850,000 homeowners throughout California. The… Continue reading Allstate Ordered to Cut Homeowners Rates in CA

Swiss insurer Zurich Financial Services Group said on Friday it had agreed to pay up to 900 million euros for half of the insurance and pension operations of Spanish bank Banco Sabadell SA.    The deal, worth the equivalent of 1.42 billion dollars, would propel Zurich to the position of second-biggest insurance group in Spain,… Continue reading Zurich to Purchase 50% Stake in Spanish Bank’s Insurance and Pension Operations

On Thursday, a top Treasury Department official made it clear that forming an Office of Insurance Information within the Treasury Department is merely an interim step, and that the Bush administration’s “intermediate” priority remains creating a federal charter option for insurers.    David Nason, assistant secretary for financial institutions in the Treasury Department, made his… Continue reading Top Gov Official Underscores Commitment to Creating OFC

The Professional Insurance Agents of New York State Inc. applaud the state legislature and Gov. David A. Paterson for their decision to approve legislation making the New York Property Insurance Underwriting Association a permanent, legal entity. This is a key piece of legislation for the property/casualty industry and New York state consumers. “On behalf of… Continue reading PIANY Sees Victory as Coastal Insurance Legislation Becomes Law

Seeking to reassure investors after Fannie Mae and Freddie Mac slid to their lowest levels in more than 17 years, U.S. Treasury Secretary Henry Paulson said officials want to keep the firms in their current form. “Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out… Continue reading Paulson Seeks to Reassure Fannie & Freddie’s Investors