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Wall Street Cautious Early Monday after Friday’s Surge

After the Federal Reserve’s move last week to step in as a lender of last resort and implication that an interest rate cut would be forthcoming, stocks continue to trade slightly higher early Monday morning but with caution.     “The market is taking some baby steps, trying to build on Friday’s rally. We’re digesting… Continue reading Wall Street Cautious Early Monday after Friday’s Surge

Hurricane Dean Losses Projected As High

EQUECAT, a California-based risk modeling company, has projected that insured looses from Hurricane Dean could reach between $1.5 billion and $3 billion. The majority of the losses would be in hard-hit Jamaica in the parishes around Kingston.     The National Oceanic and Atmospheric Administration estimates that damage would include commercial and residential fixed structures… Continue reading Hurricane Dean Losses Projected As High

NY Governor Spitzer Vetoes Credit Inquiry Bill; PCI and NAMIC Urged Veto

Late last week, New York Gov. Spitzer vetoed a credit inquiry bill which prohibits the use of a consumer’s inquiries to creditors for mortgage or automobile financing rate quotes in determining the consumer’s credit score. The Property Casualty Insurers Association of America (PCI) asked the governor to veto the legislation because it would have eliminated… Continue reading NY Governor Spitzer Vetoes Credit Inquiry Bill; PCI and NAMIC Urged Veto

Homeland Security Report Finds Flood Insurance Program No Evidence of Shifting Wind Claims to National

June Holmes, interim CEO for the Property Casualty Insurers Association of America (PCI), issued the following statement today in response to the Department of Homeland Security (DHS) Inspector General’s interim report to Congress that there was “no evidence that wind damages were improperly attributed to flooding” after Hurricane Katrina struck the Gulf Coast in 2005:… Continue reading Homeland Security Report Finds Flood Insurance Program No Evidence of Shifting Wind Claims to National

Best Places Balboa Group Ratings under Review – Negative

A.M. Best Co. has placed the financial strength rating (FSR) of “A” (Excellent) and the issuer credit ratings (ICR) of “a” of the Irvine Calif.-based Balboa Insurance Group and Newport the E&S Insurance Company of Plano, Texas under review with negative implications. Best also placed the FSR of “A-” (Excellent) and the ICRs of “a-”… Continue reading Best Places Balboa Group Ratings under Review – Negative

Wall Street, Global Markets Responding to Federal Reserve Announcement

In response to the Federal Reserve announcement that it was cutting the interest rate at which banks borrow money, Wall Street shares opened sharply higher. After an hour, the Dow Jones had fallen back and was only up 1.10% at 12,986.7. Analysts will continue to watch the market throughout the day.      The news also… Continue reading Wall Street, Global Markets Responding to Federal Reserve Announcement

Fed Makes Announcement Concerning Interest Rate Cut

In a stunning move, the Federal Reserve Open Market Committee made the following announcement concerning an interest rate cut intended to ameliorate financial market conditions:     Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest… Continue reading Fed Makes Announcement Concerning Interest Rate Cut

Countrywide Borrows Billions to Finance Operations

In a move sending shockwaves throughout the financial marketplace, Countrywide Financial Corp., the leading US mortgage lender, announced it borrowed $11.5 billion dollars from 40 banks to boost its stressed finances and continue operations as the global financial crisis curbed access to short-term financing. Countrywide says the $11.5-billion line of credit was provided by a… Continue reading Countrywide Borrows Billions to Finance Operations

Jobs Cut at Beleaguered Bear Stearns

In a statement released yesterday, New York-based Bear Sterns Cos., the second-largest underwriter of mortgage bonds, announced it is eliminating jobs at two of its divisions. “In the normal course of business Bear Stearns Residential Mortgage Corp. and Encore Credit evaluate market conditions and staffing levels in an effort to identify areas where we can… Continue reading Jobs Cut at Beleaguered Bear Stearns