Tuesday, March 3, 2009

The US has AIG. Meanwhile Canada has Manulife:


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.”

2 comments:

Kephalos said...

Gosh, where was the single National Securities Financial regulator (NSFr)?

Or maybe the job of NSFr will be to level the TSX off the field, eh?

Dr Mike said...

Can`t wait for the big "D" to come a calling on Flaherty for some cash to cover their mismanagement.

It wasn`t bad enough that they tipped the playing field in their favor , but now they want the other teams to pay for their blunders.

As I said before , they can all get stuffed.

Dr Mike.