Is Hartford Financial Services Senator Reid’s Major Insurance Company?
Is Hartford Financial, which announced today that it had signed a deal to raise $2.5 billion from Allianz, the “major insurance company” that Senator Harry Reid of Nevada said was “on the verge of going bankrupt?” Last week, the stocks of several major insurance companies fell sharply after the Senator made his comments, sparking untethered fear as investors sought to figure out which insurer was marching over the precipice of bankruptcy. A spokesman for the Senator later attempted to ameliorate the damage by backtracking, saying the Senator didn’t really mean what he said. In a different market atmosphere, many investors would probably be all too willing to believe a Senator was clueless. But these days, any sign of distress is enough to ignite panic. Now investors are hopeful it was Hartford that Reid was talking about. If it was, he would probably do everyone a favor by admitting it. Otherwise investors will be left to fear that some other brand-name insurer is still careening into
