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According to the “Wall Street Journal”, federal criminal prosecutors shoring up interest in Wall Street’s mortgage-securities activities. The Justice Department’s U.S. attorney’s office in Manhattan has notified the Securities and Exchange Commission (SEC) that it wants to see information the agency is gathering in its investigation of Merrill Lynch & Co. The SEC is examining,… Continue reading Prosecutors Increase Interest in Wall Street’s Role in Sub-Prime

Making the way for more than 130 million households to start receiving rebate checks this spring, the U.S. Congress approved a $168 billion bill to boost the economy.    The Senate passed the measure by 81-16 after Democrats withdraw demands for billions in extra spending and tax breaks, which were opposed by most Republicans. The… Continue reading Stimulus Bill Approved by Congress, Bush to Sign

On Thursday the defense lawyers in the five-week General Re Corp. finite trial rested their cases after calling several character witnesses and introducing a handful of documents to bolster their positions.     With the evidentiary phase of the trial over, U.S. District Judge Christopher F. Droney denied a defense motion to exclude dozens of… Continue reading Defense Rests its Case in Gen Re Trial

This spring, the U.S. Senate Banking Committee will devote hearings to legislation that looks to streamline state regulation of the surplus lines and reinsurance markets, the bill’s primary Republican sponsor told attendees of the 2008 Insurance Legislative Summit. But on another insurance-related bill strongly supported by his home state constituents — a proposal to create… Continue reading FL Senator Martinez Not Optimistic on National Cat Fund

In an effort to protect its AAA insurance rating, the world’s biggest bond insurer, MBIA raised $1 billion by selling shares at $12.15 each in an effort to protect its AAA insurance rating. As a result, shares of troubled bond insurer are expected to open lower today because of this dilution in the value of… Continue reading MBIA Raises More Funds than Previously Announced, Stock Expected to Drop

On Thursday Aon Corp reported a seven percent decrease in fourth-quarter net income, although its results beat Wall Street expectations.    One of world’s top insurance brokers by market capitalization, Aon’s net profit fell to $207 million, or 64 cents a share, from $223 million, or 67 cents a share, a year earlier.    Net… Continue reading Aon Reports Fourth-Quarter Drop in Net Income, Revamps Global Retail Operations

Although Warren Buffett has entered the business of bond insurance with the formation of his new company, Berkshire Hathaway Assurance, he is clear about not getting involved in the type of rsky products that have lead to widespread trouble for the industry of late.     In an interview with Canadian paper “Financial Post” on… Continue reading Buffett Says He’ll Stay Away from Risky Side of Bond Insurance Business

For more than a decade, the United Kingdom has been building a name for itself as a world financial hub that rivals New York. But the global credit crunch is making this status more of a liability than an attraction. No other large country is as dependent on the movement of foreign money through its… Continue reading The UK Facing Crisis Amid Global Credit Crunch, BoE Cuts Interest Rates

Executives from Nationwide and Allstate units doing business in Florida testified before the state’s newly formed Senate Select Committee on Property Insurance Accountability that the companies have complied with legislation designed to lower rates for homeowners insurance.    Nationwide Insurance Company of Florida was awarded in March by an arbitration panel a 54% rate increase,… Continue reading Florida Commitee Hears from Nationwide and Allstate on Homeowners Rates

The world’s second-largest credit rating company, Moody’s Corp., reported a 54 percent drop in profit and stated the first half of 2008 will be “weak” after a collapse in new bond sales reduced demand for rankings.    Fourth-quarter net income declined to $127.3 million, or 49 cents a share, from $278.6 million, or 97 cents,… Continue reading Profits at Moody’s Down, Outlook for ’08 Weak