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The benchmark S&P 500 saw gains for the entire year eliminated when U.S. stocks fell yesterday following a steep drop in shares of Countrywide Financial, prompted by a brokerage downgrade and rumors that the leading mortgage lender in the U.S. was having difficulty raising money in the commercial paper market. The flurry of activity surrounding… Continue reading Mortgage Lender Shares Drop, Erasing S&P Gains

According to Tobias Levkovich, Citigroup Inc. chief equity strategist, the recent credit market woes do not a bear market make. Levkovich says members of the S&P 500, excluding financials, “are sitting on roughly $800 billion of cash, indicating a widespread lack of need for bank loans.” He added that the biggest U.S. companies “control more… Continue reading No Bear Market Here, Says Citi Strategist

A spokesperson said the U.S. Federal Reserve Bank of New York made another cash infusion yesterday into the credit-crunched financial system to serve increased demands for liquidity in light of upset fueled by the high-risk sub-prime mortgage sector. The bank, which manages operations of the short-term federal funds market, injected $7 billion on this occasion… Continue reading Fed Injects More Cash to Meet Liquidity Demands

Looking back to 1998 when the collapse of Long-Term Capital Management LP kicked off a credit crisis, stock market investors should hold onto their U.S. stocks longer than global benchmarks may suggest in the face of today’s subprime mortgage rollercoaster ride, says Credit Suisse Group. Credit Suisse analysts led by London-based Andrew Garthwaite said that… Continue reading Credit Suisse Says U.S. Stocks Safer Than After LTCM

Tropical Storm Dean has strengthened into the first hurricane of the 2007 Atlantic storm season, increasing power as it speeds toward the Caribbean islands, announced the U.S. National Hurricane Center. The Center expects Dean, which posted sustained winds of 75 miles per hour by 5:00 a.m. EDT this morning, to continue gathering strength in the… Continue reading First of the Season’s Hurricanes Arrives

An internal audit committee review of Aon Corp.’s stock option grant practices conducted from 1994-2006 found its procedures were incorrect for several thousand awards, resulting in incorrect measurement dates to be used for financial accounting and tax purposes. In a filing with the Securities and Exchange Commission, Aon said no misconduct by current or former… Continue reading Aon Stock Option Grant Practices Found Incorrect

Final approval has been granted on a $55 million settlement agreement in the case of Satchell, et. Al. vs. FedEx Express, a subsidiary of FedEx Corp., announced a spokesperson for the company. The case alleged racial discrimination practices at FedEx Express. Insurance will cover the $55 million payment, which includes class counsel and compensation to… Continue reading $55 Million Class Action Lawsuit Settled with FedEx Subsidiary

Gov. Marc Racicot, president of the American Insurance Association (AIA), issued a statement following the release of a study by the Board of Governor’s of the Federal Reserve System entitled, “Report to the Congress on Credit Scoring and Its Effects on the Availability and Affordability of Credit.” The Federal Reserve’s study was mandated by the… Continue reading Report Reiterates Correlation Between Credit Scoring and Risk

The Chubb Group of Insurance Companies says it has assembled an environmentally friendly energy team of underwriters and loss control specialists tasked with developing environmentally friendly energies, products and technologies.    The team will focus on exploring and developing core commercial insurance products and services geared toward customers that operate within this sector.    For… Continue reading Going Green: Chubb Team Developing Renewable Energy Sector

Watching in alarm as the Dow Jones Industrial Average plummeted more than 200 points yesterday, investors’ uncertainties concerning basic economic problems, the ongoing subprime market issues as well as the volatile nature inherent in equities are playing out before their eyes.    “The market is very, very sensitive at this point, and any news about… Continue reading More Reaction to Dow’s Triple-Digit Dip