American insurers can become banks
4 November 2008It looks like, American insurance companies, including Lincoln National Corp., will try to become banks to acquire the right to the part of the means intended for financial sector, within the 250 billion dollars program.
Dennis R. Glass is president and chief operating officer of Lincoln Financial Group has declared that he considers possibility of transformation of the company, specializing on life insurance, into bank holding. At the same time Sheila C. Bair, Chairman of the Federal Deposit Insurance Corporation (FDIC), has told, that her department protecting clients of banks, can play a role of insurance companies’ regulator.
The companies, which will be transformed into banks, exactly what working with securities companies have already done, Goldman Sachs Group Inc. and Morgan Stanley, will participate in the FDIC’s program on financial system recover and receive direct loans from the Central Bank. Now such reorganization is being carried out by unprofitable hypothec creditor GMAC LLC.
In October life insurers have lost more than 40 % of the market cost because of fears that their securities, provided with actives and corporate debts, will reduce the liquidity.
- Deposit Insurance. German experience.
- Foreign insurers face obstacles in China
- Double Deposit Insurance in Germany
- Prudential has given $2 billion for purchase of actives in the USA
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