Excellent response and very factual Commissioner Praeger.
After spending several years in business, it is amazing to me that history has proven that federal oversight of banking institutions has not eliminated failures and questionable investments on their part. It is clear that using conservative accounting principles has ensured that carriers remain solvent and customers are protected throughout the fifty States. While I must admit that being an underwriter for an MGA with multi-state capability has its downfalls due to State regulations, your position paper reinforces the accurate and plain facts…well done.
Where is the money for the bailouts coming from? Are we borrowing it from China? There’s already a deficit this year so I don’t understand how else the U.S. Govt. could poney up this much cash?
It’s coming from the Federal Reserve. We are not borrowing it from any other country but printing more money to compensate. It is one more action that will devalue the dollar.
ur correct in asking where is the $$$, afterall did not the feds bail out fanny mac and sally mae. who’s funding this and where does it lie within our national budget? is america going more in debt? you wonder why companies are outsourcing for customer service, factory workers and several other things. if no money is being spent by these big companies, no taxes will encourage growth. more and more people sleep on welfare/social security that could really be working. lets face it – we need to really keep our money in house and not forgiven, including foreign countries. i don’t think china will forgive our debt!
Excellent explanation and presentation of facts. The Truth, which seldom sees the light of day because of what and who is revealed, proves that STATE regulation is closer to the consumer and closer to the potential problems that impact consumers. AIG’s problem, it’s mortgage and lending divisions, is Federally regulated – and has failed yet again; while it’s STATE regulated insurance divisions remain solvent and profitable because of STATE oversight and regulation.
BULL, Sandra is is being paid by lobbyist to say what she is saying. Federal Regualtion could’ve required that insurance companies and financial service companies and whatever else can not be owned by the same corp. Therefore protecting the P & C and life companies from being effected from the other. Simple and safe. If the Corps can’t afford to do it this way then it shouldn’t be done. What are they getting a discount price by having it all under one umbrella? And I wish someone would answer my question on whether AIG is an American Based Company and have they paid their taxes? My guess is that they are based out of China to avoid US Fed and state income tax.
AIG faced a liquidity issue becuase it could not post collateral required of it after a ratings downgrade. Sandy Praeger’s beloved NAIC is trying to push through a change in reinsurance regulation that would require reinsurers with ratings like AIG had a week ago to not post any collateral until after a ratings downgrade. The NAIC has been trying to force this regulation down the throat of US ceding insurers who have been telling her that the rule won’t work, that reinsurers won’t be able to post collateral after a downgrade. And why has Ms. Praeger and her beloved NAIC kept pushing this financial nightmare of a rule? Because Europeans have complained in Washington, DC and that makes state regulators nervous that the Europeans are going to push for federal regulation if the NAIC does not act. In other words, they are acting on what they think is in their political best interest, just as she accuses insurers of doing.
Why on Monday Morning did the Gov of NY
@ 9:00 AM East coast time state that he had approved $20 Billion from AIG Ins Co to holding company. What Did other states Ins Dept vote on this? they didnt! Did NY do this for the nation or the NY employees of AIG etc???????????
Also if Fed regulation would the Feds push Greenberg our like the NY attn gen who was running for the gov of NY… this hurt the AIG ability to survive??????????
Excellent response and very factual Commissioner Praeger.
After spending several years in business, it is amazing to me that history has proven that federal oversight of banking institutions has not eliminated failures and questionable investments on their part. It is clear that using conservative accounting principles has ensured that carriers remain solvent and customers are protected throughout the fifty States. While I must admit that being an underwriter for an MGA with multi-state capability has its downfalls due to State regulations, your position paper reinforces the accurate and plain facts…well done.
Where is the money for the bailouts coming from? Are we borrowing it from China? There’s already a deficit this year so I don’t understand how else the U.S. Govt. could poney up this much cash?
It’s coming from the Federal Reserve. We are not borrowing it from any other country but printing more money to compensate. It is one more action that will devalue the dollar.
ur correct in asking where is the $$$, afterall did not the feds bail out fanny mac and sally mae. who’s funding this and where does it lie within our national budget? is america going more in debt? you wonder why companies are outsourcing for customer service, factory workers and several other things. if no money is being spent by these big companies, no taxes will encourage growth. more and more people sleep on welfare/social security that could really be working. lets face it – we need to really keep our money in house and not forgiven, including foreign countries. i don’t think china will forgive our debt!
Excellent explanation and presentation of facts. The Truth, which seldom sees the light of day because of what and who is revealed, proves that STATE regulation is closer to the consumer and closer to the potential problems that impact consumers. AIG’s problem, it’s mortgage and lending divisions, is Federally regulated – and has failed yet again; while it’s STATE regulated insurance divisions remain solvent and profitable because of STATE oversight and regulation.
BULL, Sandra is is being paid by lobbyist to say what she is saying. Federal Regualtion could’ve required that insurance companies and financial service companies and whatever else can not be owned by the same corp. Therefore protecting the P & C and life companies from being effected from the other. Simple and safe. If the Corps can’t afford to do it this way then it shouldn’t be done. What are they getting a discount price by having it all under one umbrella? And I wish someone would answer my question on whether AIG is an American Based Company and have they paid their taxes? My guess is that they are based out of China to avoid US Fed and state income tax.
AIG faced a liquidity issue becuase it could not post collateral required of it after a ratings downgrade. Sandy Praeger’s beloved NAIC is trying to push through a change in reinsurance regulation that would require reinsurers with ratings like AIG had a week ago to not post any collateral until after a ratings downgrade. The NAIC has been trying to force this regulation down the throat of US ceding insurers who have been telling her that the rule won’t work, that reinsurers won’t be able to post collateral after a downgrade. And why has Ms. Praeger and her beloved NAIC kept pushing this financial nightmare of a rule? Because Europeans have complained in Washington, DC and that makes state regulators nervous that the Europeans are going to push for federal regulation if the NAIC does not act. In other words, they are acting on what they think is in their political best interest, just as she accuses insurers of doing.
Why on Monday Morning did the Gov of NY
@ 9:00 AM East coast time state that he had approved $20 Billion from AIG Ins Co to holding company. What Did other states Ins Dept vote on this? they didnt! Did NY do this for the nation or the NY employees of AIG etc???????????
Also if Fed regulation would the Feds push Greenberg our like the NY attn gen who was running for the gov of NY… this hurt the AIG ability to survive??????????
AIG didn’t understand the investments it was getting into? I find that hard to believe.