Does AIG’s Self-Dealing Pose Systemic Risk?
While our equity markets are making new highs for the year, I cautioned readers the other day “No Time for Complaceny on Insurance and Money Fund Exposures.” On the insurance front, I specifically highlighted: Experts Call for Fed Involvement in Insurance Industry – but to Different Degrees; InvestmentNews, July 29, 2009 Members of Congress are being urged to create – at a minimum – a new regulatory body within the federal government to focus on the insurance industry. “There is some systemic risk in insurance requiring a regulator,” said Travis Plunkett, legislative director of the Washington-based Consumer Federation of America, who was part of a panel of experts testifying today at a Senate Banking Committee hearing on modernizing insurance regulation. “In order to fully understand and control systemic risk in this very complex industry, the federal government should take over solvency and prudential regulation of insurance as well. Where may this systemic risk within the insurance
