State regulation worked really well in the market meltdown. State regulators didn’t allow insurance operations to upstream money to the holding company. P/C carriers are fine-it’s the Feds that screwed up by not regulating Credit Default Swaps.
I’m surprised to see such a poorly researched article. It’s clearly a cynical propaganda piece designed to fool the uneducated into believing that AIG is an insurance company. I agree that we’re likely to have federal legislation, but it’s not because AIG’s insurance subs faced serious solvency issues, but because whoring industry lobbyists will distort facts to put more money in their pockets and make it harder to protect consumers. Yuk.
Federal Regulation (or lack of it) is what caused the problem at AIG Financial. This was not AIG Insurance who is regulated by the State Insurance Division. The problem is that there is a small group at the NAIC that believes federal regulation is the answer. Most are clue less when it comes to insurance laws and regulations. They are only looking to increase the insurance company revenues and make it easy to sell products that will not protect the consumer buying public at all! And who will be sued over these bad products? The insurance agents who are selling the policies that’s who! The insurance agents of this country should be up in arms over the very thought of federal regulation! Look how the federal government has ran our country. Getting involved in the insurance business would be a disaster!
Federal Regulation was what ALLOWED AIG’s management company to get is such a mess.
State Insurance Division Regulations are what KEPT THE INSURANCE COMPANIES SIDE SOLVENT. They were the ones that ensured that AIG had ADEQUATE RESERVES to P-A-Y CLAIMS and protect the insurance buying public
For decades the BIG BOYS at AIG have lobbied hard and deep to do away with State Regulation of Insurance. One of their objections to State Regulation centered around the Insolvency Laws that the States devised in the 1960’s. It is these very Laws that have kept their real insurance operations in check and solvent.
When they found an end run for business via SEC and Treasury oversight (or lack thereof)their greed and lack of prudent judgment gave the mortgage industry a flawed basis to loan money on. When mortgage claims exceeded their ability to pay for lack of adequate reserves we witness an economic death spiral.
Welcome to Federal Oversight!
All this is one step closer to Armageddon, as predicted. It won’t be long before the Fed makes all of us reliant upon them, their system fails, and then the “need” for one global “econonic savior.” Then comes the false savior, the Antichrist (as predicted), then comes Armageddon. The end times are beginning now.
Do you really think that our government, who has spent us into mind-boggling debt, and is continuing to do so, will come up a fix by taking on more things they can’t handle? Repent of any sins and make straight your ways because we are in the end times. Its not hard to see. Search the internet for Armegeddon, Antichrist, and what to do about it if you are not familiar with what I am talking about. It might save you from eternal, ETERNAL – think about it – damnation. There is no end to eternal.
Another example of good old washington egos getting the best of them. Thanks fellas for pointing out a problem and then telling everyone how your going to fix it.
The problem with AIG and the other companies with toxic debt on the books is that there was poor managment decisions made. The guys who decided to leverage AIG, Citi, Bear Sterns, etc with questionable investments have this mess squarely on their shoulders.
Some Regulation is needed, but these type of articles point to the knee jerk reaction these politicians make. “See, I pointed out the problem and now I’m going to come up with a way to solve it!” is washingtons way of handling things.
Companies that are lining up to get “bailed out” should be pointed right back in the direction of their investment decisions. They made this mess and they need to deal with the consequences. The market needs to contract and failing companies need to fail. It is not the taxpayers place to come to the aid of companies when they have made poor investments. Can you imagine the reaction if taxpayers came to the doorsteps of profitable businesses during a time of need?
We either address this problem now by letting failing companies fail, or we just prolong the process.
Sorry to ramble, but the article stems from the ongoing trends and problems in our Economy today.
It is amazing how everyone can link everything to the end times. People have been saying it is the end of the world since the beginning of the world. The end times aren’t near. This is a constant cycle. Everything moves in a circular motion. Things are rough. Things get better. Things suck again. Things get better. etc etc
At this time the people in government are just trying to milk us for everything they can. Greedy bastards are getting greedier. Eventually the government will go too far and everything will drastically change. It has always happened and it always will.
State regulation worked really well in the market meltdown. State regulators didn’t allow insurance operations to upstream money to the holding company. P/C carriers are fine-it’s the Feds that screwed up by not regulating Credit Default Swaps.
Right on but the feds are very adept at playing the blame game to their favor. Fed regulation is coming we just have to see how it roles out.
I’m surprised to see such a poorly researched article. It’s clearly a cynical propaganda piece designed to fool the uneducated into believing that AIG is an insurance company. I agree that we’re likely to have federal legislation, but it’s not because AIG’s insurance subs faced serious solvency issues, but because whoring industry lobbyists will distort facts to put more money in their pockets and make it harder to protect consumers. Yuk.
Federal Regulation (or lack of it) is what caused the problem at AIG Financial. This was not AIG Insurance who is regulated by the State Insurance Division. The problem is that there is a small group at the NAIC that believes federal regulation is the answer. Most are clue less when it comes to insurance laws and regulations. They are only looking to increase the insurance company revenues and make it easy to sell products that will not protect the consumer buying public at all! And who will be sued over these bad products? The insurance agents who are selling the policies that’s who! The insurance agents of this country should be up in arms over the very thought of federal regulation! Look how the federal government has ran our country. Getting involved in the insurance business would be a disaster!
Federal regulation of the Financial Industry was and is a TOTAL FAILURE. To combat this, lets bring the Feds in on Insurance Regulation?
AIG destroyed themselves through unregulated Financial transactions, not heavily regulated Insurance transactions.
The Fed needs to regulate the source of the problem, not create a new one.
The States are doing their job. It’s the Feds who have failed the system.
Federal Regulation was what ALLOWED AIG’s management company to get is such a mess.
State Insurance Division Regulations are what KEPT THE INSURANCE COMPANIES SIDE SOLVENT. They were the ones that ensured that AIG had ADEQUATE RESERVES to P-A-Y CLAIMS and protect the insurance buying public
For decades the BIG BOYS at AIG have lobbied hard and deep to do away with State Regulation of Insurance. One of their objections to State Regulation centered around the Insolvency Laws that the States devised in the 1960’s. It is these very Laws that have kept their real insurance operations in check and solvent.
When they found an end run for business via SEC and Treasury oversight (or lack thereof)their greed and lack of prudent judgment gave the mortgage industry a flawed basis to loan money on. When mortgage claims exceeded their ability to pay for lack of adequate reserves we witness an economic death spiral.
Welcome to Federal Oversight!
Just think what a windfall Federal Regulation will mean to individual insurance companies….only ONE lobbyist to feed, not 52 (one for each state).
look what that got us.
Does anybody trust the federal government?
All this is one step closer to Armageddon, as predicted. It won’t be long before the Fed makes all of us reliant upon them, their system fails, and then the “need” for one global “econonic savior.” Then comes the false savior, the Antichrist (as predicted), then comes Armageddon. The end times are beginning now.
Do you really think that our government, who has spent us into mind-boggling debt, and is continuing to do so, will come up a fix by taking on more things they can’t handle? Repent of any sins and make straight your ways because we are in the end times. Its not hard to see. Search the internet for Armegeddon, Antichrist, and what to do about it if you are not familiar with what I am talking about. It might save you from eternal, ETERNAL – think about it – damnation. There is no end to eternal.
Another example of good old washington egos getting the best of them. Thanks fellas for pointing out a problem and then telling everyone how your going to fix it.
The problem with AIG and the other companies with toxic debt on the books is that there was poor managment decisions made. The guys who decided to leverage AIG, Citi, Bear Sterns, etc with questionable investments have this mess squarely on their shoulders.
Some Regulation is needed, but these type of articles point to the knee jerk reaction these politicians make. “See, I pointed out the problem and now I’m going to come up with a way to solve it!” is washingtons way of handling things.
Companies that are lining up to get “bailed out” should be pointed right back in the direction of their investment decisions. They made this mess and they need to deal with the consequences. The market needs to contract and failing companies need to fail. It is not the taxpayers place to come to the aid of companies when they have made poor investments. Can you imagine the reaction if taxpayers came to the doorsteps of profitable businesses during a time of need?
We either address this problem now by letting failing companies fail, or we just prolong the process.
Sorry to ramble, but the article stems from the ongoing trends and problems in our Economy today.
I thought federal regulation would just be anti-consumer. Now that I know it’s a step closer to the Anti-Christ, I’m even more opposed.
It is amazing how everyone can link everything to the end times. People have been saying it is the end of the world since the beginning of the world. The end times aren’t near. This is a constant cycle. Everything moves in a circular motion. Things are rough. Things get better. Things suck again. Things get better. etc etc
At this time the people in government are just trying to milk us for everything they can. Greedy bastards are getting greedier. Eventually the government will go too far and everything will drastically change. It has always happened and it always will.