Category: Show on Homepage

French bank Societe Generale says it has uncovered “massive” fraud by a Paris-based trader which resulted in a loss of 4.9bn euros ($7.1bn; £3.7bn).The bank said the fraud was based on simple transactions, but concealed by “sophisticated and varied techniques”.    Societe Generale also announced new write-downs of 2.05bn euros related to the subprime mortgage… Continue reading Massive Fraud at Societe Generale by Rogue Paris Trader, Also Announces Losses Related to US Subprime

In a press conference on Wednesday, U.S. Sen. Christopher Dodd stated that je is determined to move federal flood insurance legislation through the Senate promptly, despite resistance from Louisiana lawmakers.     “I intend to do all I can to move this legislation to the president’s desk as soon as possible,” said former US Presidential… Continue reading Senator Dodd to Push Flood Insurance Reform Legislation

John Houldsworth, the former chief executive officer of Cologne Re Dublin, in his testimony to a federal jury on Wednesday stated that understood from his first conversations with General Re Corp. officials about a proposed reinsurance deal with American International Group Inc. that the deal would include no risk transfer.    Mr. Houldsworth conveyed that,… Continue reading Former Cologne Re Exec Testifies in Gen Re Trial, Understood No Risk Involved

On Wednesday Massachusetts’ top securities regulator stated that he requested information from bond insurers MBIA Inc and Ambac Financial Group last week in a probe about their exposure to high risk securities.    State’s Secretary William Galvin reported that he is trying to determine if the insurers informed Massachusetts communities that were trying to raise… Continue reading MA Securities Regulator Subpoenaed MBIA and Ambac to Assess Risk in Securities

Hoping a rescue plan for ailing bond issuers would stop a new round of credit losses, investors in the global market poured back into equities on Thursday.     Wall Street looked set to open higher and demand for bonds fell sharply as equities rebounded. The dollar weakened.    European and Asian stocks markets took… Continue reading Request for Bond Insurance Financial Support Helps Equity Rebound

According to Insurance Superintendent Eric Dinallo, New York’s Department of Insurance, the primary domestic regulator for each of the top five U.S. bond insurers, will step up oversight of the troubled financial guaranty insurance sector with an eye toward attracting capital and ensuring the continued availability of coverage.       Several weeks after confirming he… Continue reading NY Insurance Dept to Step Up Oversight of Bond Insurance

With a sharp attack on the industry by a heavyweight national consumer advocate, state lawmakers on Tuesday opened their own investigation into why homeowners’ insurance rates haven’t dropped to expected levels.     One year after lawmakers acted to combat skyrocketing premiums, the Senate Select Committee on Property Insurance Accountability invited J. Robert Hunter, director… Continue reading FL Lawmakers Open Investigation on H/O Rates

Bond insurer Ambac Financial Group Inc. said it was in talks with “very credible” potential partners that could help it boost its capital reserves. This comes on the heels of yesterday’s posting of fourth-quarter losses of $3.26 billion in losses and triple-A credit rating cut by Fitch Ratings. Ambac still remains rated triple-A by Standard… Continue reading Ambac in Talks with Potential Partners to Help Boost Reserves

Swiss Re announced on Wednesday that Warren Buffett’s Berkshire Hathaway Inc. has taken a 3% stake in the reinsurer and will assume 20% of its property and casualty business for the next five years. This move allows the company to increase its share buyback, but also concerns the reinsurer was giving a rival too much… Continue reading Buffett Gives Swiss Re a Boost with P/C Deal

The Federal Reserve yesterday stepped in with a 75 percent basis point cut and helped spare stock markets from a dramatic decline. However, today futures suggested that equities were again likely to turn substantially lower amid continuing anxiety about the economy. Today, about an hour before the start of trading, the Dow Jones Industrial Average… Continue reading Wall Street Braces for More Losses Today After Roller Coaster Ride Yesterday