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The Federal Deposit Insurance (FDIC) said Thursday that troubled real estate loans forced U.S. banks to boost loan loss provisions to a record $37.1 billion in the first quarter of 2008, compared to $9.2 billion in the year-ago period.    Additionally, the number of problem banks rose to 90, up from 76 at the end… Continue reading Troubled Real Estate Loans Force Banks to Set Aside a Record $37+ Billion

On Monday afternoon President Bush signed disaster designation forms, giving Windsor, Weld and Larimer counties in Colorado access to federal funds to help them and their residents rebound from last week’s tornado and hailstorm. Sean Conway, chief of staff for U.S. Sen. Wayne Allard, R-Colo., said Federal Emergency Management Agency officials told the senator Bush… Continue reading Tornado in CO Designated as Disaster by President Bush, Funding to Help with Uninsured Losses

According to a report by the Financial Times, Italian insurer Assicurazioni Generali SpA has withdrawn from the bidding for Royal Bank of Scotland Group Plc’s insurance assets. Generali has pulled out because of what it believes are RBS’s high price expectations according to the publication who spoke with people familiar with the situation. Generali declined… Continue reading Italian Insurer Generali No Longer Bidding for RBS’ Insurance Unit

The subprime mortgage debacle continues as unhappy buyers of the these loans as well as home-equity and other real-estate loans are trying to force banks and mortgage companies to repurchase them. The pressure is the result of provisions in many loan sales that require lenders to take back loans that default unusually fast or contained… Continue reading Investors Want Banks, Mortgage Companies to Repurchase Bad Loans

At a meeting in Paris this week, the International Organisation of Securities Commissions (IOSCO) stated that credit rating agencies will be banned from helping to design products they also grade. This is part of an effort to implement and enforce a tougher industry code of conduct to tackle issues raised by the U.S. subprime mortgage… Continue reading Tougher Industry Code for Credit Rating Firms

A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit rating (ICR) of “bbb-” of American Community Mutual Insurance Company (American Community) (Livonia, MI). The negative outlook reflects a series of operational missteps made by American Community over the past few… Continue reading American Community Mutual Insurance Company

Last week the Professional Insurance Agents associations of Connecticut, New Hampshire, New Jersey and New York State Inc. jointly asked for legislation in New York state to solve a problem linked to a recent workers’ compensation law that is causing major problems for members trying to advise out-of-state clients. The difficulties were caused inadvertently by… Continue reading PIA Looks for Remedy on WC Law in NY

Results from the latest stage of the ongoing Towers Perrin/Cass Business School research looking at the value created in the last three global M&A cycles reveals that, contrary to conventional wisdom, 2008 may be the best time to do a deal.     “This most recent part of the study looked at the performance of… Continue reading Research Shows 2008 May Be the Best Year for M&As

Risk managers and insurance companies should consistently employ robust enterprise risk management strategies and business continuity programs, particularly important as the start of the 2008 Atlantic hurricane season approaches and leading forecasters expect this year will be an active one for hurricane and tropical storm formation, Aon Corp. said on Monday.      The National Oceanic… Continue reading Risk Managers Should Prepare for Active Hurricane Season