Can someone explain to me the difference between the conduct of AIG and the conduct of Manulife?
The New York Times: “A.I.G. exploited a huge gap in the regulatory system,” Mr. Bernanke said. “There was no oversight of the financial products division. This was a hedge fund, basically, that was attached to a large and stable insurance company.” And this quasi-hedge fund, Mr. Bernanke went on, to nobody’s surprise, made irresponsible bets and took huge losses."
Globe and Mail: “Here's what we know now: That Manulife sold contracts to investors that promised guaranteed investment returns, did not hedge the risk (as other insurers had done), and is thus on the hook - on paper - for a liability that's some $30-billion and gets a little bit bigger every time the market falls again.”
Tuesday, March 3, 2009
Posted by Fillibluster at 9:16 PM