BestWeek: Observers Say Backlash Over AIG bonuses could jeop

 

Monday, Mar 23,2009, 11:29:19 PM   Click:

Copyright: Business Wire
Source: Business Wire
Wordcount: 304

Business Editors / Insurance Writers

Oldwick, NJ - (BUSINESS WIRE) - March 20 2009 - Last week, it seems the future of government support beleaguered insurer American International Group Inc (AIG) (New York, NY) could be defeated by the payment of $ 165 million in bonuses, according to this week's BestWeek US / Canada. The legislators spoke at hearings of appeals from constituents expressing outrage for making payments. But John D. Martini, a partner at Reed Smith, said the country might be mired in anger and losing sight of the broader.

In BestWeek Europe, a call by the chairman of the UK Financial Services Authority (FSA) for the strict banking regulations May feed the global drive towards a closer examination of all financial services. Adair Turner, chairman of the FSA, has recommended changes to existing rules in areas such as banking capital and liquidity. Turner also said the rating agencies should be subject to regulation and that "reforms" be introduced in the regulation of banks in Europe.

Also in BestWeek US / Canada, funds related to investment losses and the collapse of stock markets hammering their profits over a year, the U.S. insurance industry-life market capitalization total declined in a large way. That is why it is difficult for some companies to use their shares for cash access at a time they are preserving as much as they can for the suspension of share repurchase programs.

BestWeek is published by hours Best Co. for insurance professionals. To subscribe, please visit www.ambest.com / sales / BestWeek, or e-mail your request to customer_service @ ambest.com.

Founded in 1899, PM Best Company is a full-service credit rating organization dedicated to serving the financial and service industries, including insurance companies, banks, hospitals and suppliers of system health care. For more information, visit www.ambest.com.



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