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Lehman Debt Auction Gives Clue to Potential Insurance Payouts

National News • October 13, 2008
Sellers of insurance on bonds issued by bankrupt Lehman Brothers Holdings Inc. are now likely to face demands that they pay out more than 91 cents on the dollar to buyers of those insurance ...

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Subject: Its begining??

Posted On: October 21, 2008, 7:04 am CDT
Posted By: Shrinivas Shikhare
Comment:
Agree. Credit default swaps (CDS) are insurance-like contracts that are sold as protection against default on loans, but CDS are not ordinary insurance. Insurance companies are regulated by the government, with reserve requirements, statutory limits, and examiners routinely showing up to check the books to make sure the money is there to cover potential claims CDS are private bets, and the Federal Reserve has insisted that regulators keep hands off.

If 'protection sellers' has to pay 91 cents of $1 then it would be another hit to CDS market. In December quarter, it would be scary to read MTM losses of the I-bankers and balance sheet of the insurer or other 'protection sellers'.
Subject Posted By Posted On
Its begining?? Shrinivas Shikhare
Oct 21, 2008, 7:04 am
RE: RE: RE: aig - finance not insurance Stat Guy
Oct 14, 2008, 10:21 am
RE: RE: RE: aig - finance not insurance who cares?
Oct 14, 2008, 8:48 am
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Oct 14, 2008, 7:57 am
RE: aig - finance not insurance
Oct 13, 2008, 4:26 pm
aig - finance not insurance az
Oct 13, 2008, 12:41 pm
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