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The Property Casualty Insurers Association of America (PCI) and the Insurance Research Council (IRC) announced today that PCI has joined nine other insurance organizations as the newest member of the IRC. PCI is a national trade association representing more than 1,000 property/casualty insurance companies. IRC is a public policy research organization providing objective analysis on… Continue reading PCI Joins Insurance Research Council

Yesterday the Federal Reserve cut its short-term interest rate target 0.75 percentage point to 2.25%, and hinted at more cuts to come. The cut was less than financial markets wanted, but in a sign the Fed’s prior efforts to boost lending through unconventional means may be getting some traction, stocks soared, buoyed by earnings reports… Continue reading More Help Hinted Amid Yesterday’s Fed Cut Rate

First-quarter earnings for Morgan Stanley fell amid write-downs in mortgages and loans, however resilient trading results helped the second-largest US investment bank exceed lowered expectations by a wide margin. The results offer a big boost to Chief Executive John Mack, trying to help the bank recover from $9.4 billion in mortgage trading losses last year… Continue reading Morgan Stanley Posts Better than Expected Earnings for First Quarter

According to data released today from the Mortgage Bankers Association (MBA), applications for U.S. home mortgages last week fell to their lowest since December despite a sharp drop in borrowing costs.    The MBA said its seasonally adjusted index of mortgage application activity declined 2.9 percent to 652.0 in the week ended March 14. It… Continue reading Mortgage Applications at Their Lowest Since December

On Wednesday, the Office of Federal Housing Enterprise Oversight (OFHEO), regulator of Fannie Mae and Freddie Mac, eased capital requirements for the two firms to provide up to $200 billion in immediate liquidity for stressed mortgage markets.     OFHEO will lower to 20 percent from 30 percent the amount of extra capital the companies… Continue reading Fannie Mae and Freddie MAC Capital Requirements Eased

According to sources, Fannie Mae and Freddie Mac are closer to an arrangement that would increase their ability to ease tight credit by broadening their ability to buy mortgages being shunned by other investors.    The deal would see the largest providers of funds for U.S. residential mortgages win relief from a capital surcharge that… Continue reading Fannie Mae and Freddie Mac Working on Deal to Boost Mortgage Buying

As if things weren’t bad enough for Bear Stearns, the troubled investment bank received a ruling from a New York appeals court last week that its insurers are not responsible for the costs of an $80 million settlement in late 2002 over the firm’s stock research practices. The ruling came before the troubled bank agreed… Continue reading More Bad News for Bear Stearns in Court Ruling in Insurance Case

A settlement was reached last week between American International Group Inc (AIG) and the Pennsylvania Insurance Department over financial misreporting involving its alleged reinsurance deal with General Re Corp. The insurer agreed to pay $13.5 million, including a $6.6 million fine. Additionally, according the the PA Insurance Department, the settlement resolves client-steering and bid-rigging allegations… Continue reading AIG Reaches Settlement with PA Insurance Department

A special Florida Senate committee appointed to look into why the state homeowners insurance market has not met expectations after legislators offered more reinsurance last year, has submitted a list of informal proposals designed to curtail premiums.    The state regulators applauded the efforts while the Florida Insurance Council, the state’s largest trade association, said… Continue reading FL Senate Provides Proposals to Improve Homeowners Market

Less than what analysts estimated, Lehman Brothers Holdings Inc. said profit fell 57 percent. First-quarter net income declined to $489 million, or 81 cents a share, from $1.15 billion, or $1.96, a year earlier, the New York-based firm said in statement today. Lehman’s CEO Richard Fuld was forced yesterday to reassure shareholders when he said… Continue reading Lehman Also Sees Less-Than-Expected Losses, Calming Investors