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Yesterday at the Senate Banking Committee the chief executives at Bear Stearns and JP Morgan Chase said Bear Stearns could not have been saved without the financial aid from the Federal Reserve, and that failing to rescue it would have been a disaster for the markets and the economy.     “The consequences would have… Continue reading Senate Committee Hears Fed’s Defense of Bear Stearns Deal

The weakening economy and credit crunch will have a muted impact on property/casualty insurers, Dr. Robert P. Hartwig, president of the Insurance Information Institute, told the Casualty Actuarial Society Ratemaking Seminar attendees.    In a general session, Hartwig noted that despite the slowdown in the U.S. economy, the property/casualty industry will be somewhat cushioned from… Continue reading Report: U.S. Economic Problems Should Have Muted Impact on Property/Casualty Insurers

Members of the Senate Banking Committee today are looking for answers in the Fed’s role in the Bear Stearns bailout. They want to know among other things did the Fed go too far in his role in the Bear Stearns deal, how the players came up with the $2 per share amount, and did any… Continue reading BREAKING NEWS: Senate Banking Committee Hearing Looks for Answers in Bear Stearns Deal

According to an American Bankers Association survey, consumers have fallen behind in paying car, credit-card and home-equity loans at the highest level in 15 years during the fourth quarter, another sign the U.S. economy is slowing.     Payments at least 30 days past due increased across all eight categories of loans tracked, the Washington-based… Continue reading Survey Reflects Consumer Late Payments at Highest Level Since ’92

A.M. Best Co. has placed the financial strength rating of ‘A-‘ (Excellent) and issuer credit ratings of “a-” under review with negative implications for Philadelphia-based Excess Reinsurance Group. “The group is comprised of Excess Reinsurance Company (Delaware) and its wholly owned subsidiary, Guilderland Reinsurance Company (New York), both of which operate under a reinsurance pooling… Continue reading Ratings Recap: Excess Re

For the first time, Federal Reserve Chairman Ben Bernanke acknowledged that the economy may contract as homebuilding weakens further, unemployment rises, and consumer spending slumps. But he also signaled that “much” of the needed economic and financial market adjustment has already taken place and that conditions should improve later this year, suggesting there may not… Continue reading Bernanke Speaks About Economy, Mentions Contraction for First Time

The Mortgage Bankers Association on Wednesday stated that US mortgage applications plunged last week, largely reflecting a drop in demand for home refinancing loans. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended March 28 fell 28.7 percent to 688.3. The… Continue reading Mortgage Appplications Plunge as Refinancing Loans Drop

Massachusetts today became the last state to give up the authority to set rates in a plan designed to increase competition and lower rates. “It’s a wonderful day for drivers,” said Insurance Commissioner Nonnie Burnes, who predicted most would see premiums fall 10 percent. “It also could be a good day for business,” as more… Continue reading MA Steps into Era of Auto Insurance Deregulation Today

In the wake of the Bush administration’s proposal to overhaul the nation’s financial regulatory system, small banks, state officials and others began their criticism of the plan.     “It reads like amateur hour and it’s because none of those guys ever worked in a regulated, chartered bank,” said Camden Fine, president and chief executive… Continue reading Small Banks, State Officials Unhappy with Overhaul Regulatory Proposal

The US Treasury Secretary Henry Paulson on Monday announced the department’s blueprint to overhaul financial regulation, including establishing federal insurance regulator. Even before the official announcement early yesterday morning industry leaders began weighing in on the proposed of an optional federal charter (OFC), and after the announcement there has been plenty of to say.  … Continue reading Overview: Industry Leaders Weigh in on OFC Proposal by Treasury Department