Day: October 10, 2008

Judge Fallon posts letter on Perdigao docket

This case is beginning to make me wonder what three cards are in the envelop – and if we’re blogging about a real life variation of Clue.

The Court has received the attached letter. The sentiments expressed in the letter were also expressed by Defense counsel at a status conference, with counsel for both parties present. Therefore, nothing contained in the letter can in any way be privileged.

IT IS Ordered that the attached letter is filed into the record.

If any motions need to be filed. including motions to expedite matters presently pending, the motions should be filed as counsel deems appropriate.

You’ll find background on the letter in the post Making up for lost time – including a link to the Motion in limine filed by the USA.  William Wessel, legal counsel for Perdiago, has written Judge Continue reading “Judge Fallon posts letter on Perdigao docket”

Insurers Taking a Big Hit

This from Standard and Poor’s via Reuters on the life insurance sector. Notice the price increase on the CDS derivatives that hedge Allstate’s debt:

Standard & Poor’s on Friday said it is revising its outlook on the U.S. life insurance sector to “negative” from “stable” as it expects higher-than-usual credit losses and lower fee-based revenues as a result of the current turmoil in financial markets.

“We expect to revise the ratings or outlooks on several life insurers in the next few months because of the impact of these challenging macroeconomic conditions,” S&P analyst Kevin Ahern said in a statement. Continue reading “Insurers Taking a Big Hit”

Interactive graphic of Paulson's Wall Street network

In following links on my late Friday afternoon read-around, I found this interactive graphic of Secretary Paulson’s finance network that I thought would be interesting to others.

If it sometimes seems that Wall Street is a small world, well, it is. For all its global reach, and for all the bitter conflict in recent months, where, for example, Lehman Brothers was left to tumble into bankruptcy while American International Group was bailed out, these are people who know each other, often well. Nowhere are the ties more evident than with U.S. Treasury Secretary Henry Paulson. Many of the CEOs of companies touched by the financial crisis have links to him. Some, such as Goldman Sachs CEO Lloyd Blankfein, have direct connections via that company, which Paulson used to head. Others connect through a network of fellow CEOs.

This graphic shows where those CEOs fit into Paulson’s network starting as recently as in 2003. Connections include employment at the same company or a position on the same board of directors, but not necessarily at the same time. We did not include every company at which these CEOs have worked – just those within this network. We also omitted ties to community and social organizations as well as instances in which CEOs simultaneously held other positions at a company such as board chairman.

Take a look and see what you think.

Interactive graphic of Paulson’s Wall Street network

In following links on my late Friday afternoon read-around, I found this interactive graphic of Secretary Paulson’s finance network that I thought would be interesting to others.

If it sometimes seems that Wall Street is a small world, well, it is. For all its global reach, and for all the bitter conflict in recent months, where, for example, Lehman Brothers was left to tumble into bankruptcy while American International Group was bailed out, these are people who know each other, often well. Nowhere are the ties more evident than with U.S. Treasury Secretary Henry Paulson. Many of the CEOs of companies touched by the financial crisis have links to him. Some, such as Goldman Sachs CEO Lloyd Blankfein, have direct connections via that company, which Paulson used to head. Others connect through a network of fellow CEOs.

This graphic shows where those CEOs fit into Paulson’s network starting as recently as in 2003. Connections include employment at the same company or a position on the same board of directors, but not necessarily at the same time. We did not include every company at which these CEOs have worked – just those within this network. We also omitted ties to community and social organizations as well as instances in which CEOs simultaneously held other positions at a company such as board chairman.

Take a look and see what you think.

IRS guidance on new law allowing housing grant recipients to amend tax returns – Road Home included

Good news for those who obtained housing grants after Hurricanes Katrina, Wilma and Rita – including those in Louisiana under the State’s Road Home assistance program. h/t Brian Martin

WASHINGTON — The Internal Revenue Service today released a notice designed to help eligible homeowners who received federal reimbursement grants stemming from Hurricanes Katrina, Rita or Wilma take advantage of a new tax provision.

Notice 2008-95 provides guidelines to homeowners who received these grants, including the Louisiana Road Home Grants and the Mississippi Development Authority Hurricane Katrina Homeowner Grants.

The Housing and Economic Recovery Act, enacted this summer, included the new provision, aimed at helping grant recipients who previously claimed hurricane-related disaster-loss deductions on their main home. The new law gives affected homeowners the option of adjusting previously claimed deductions by treating their Continue reading “IRS guidance on new law allowing housing grant recipients to amend tax returns – Road Home included”

A big SLABBED good-bye to David Maurstad – wish we could have missed you sooner

Interesting news via CLS – a h/t and thank you, too – and as much as I need a vacation to recover from my vacation, I could never be too tired to post a SLABBED good-bye to David Maurstad.

David Maurstad will resign as the assistant administrator for mitigation and administrator of the National Flood Insurance Program for the Federal Emergency Management Agency on Sept. 13.

“It was time to wrap up with FEMA and move on,” Maurstad said Thursday morning. “It’s been a very challenging time to be involved with FEMA, but it’s been very rewarding.”

Obviously, the challenge was making his time with FEMA rewarding to the insurance industry – and I doubt it will be long before that rewarding experience is rewarded.

It will be so good to miss Mr. Maurstad when the new Congress considers Gene Taylor’s proposed changes in the National Flood Insurance Program without him around to testify in opposition to expanding the coverage to include damage from hurricane wind.

…a new,multi-peril NFIP would displace State initiatives for addressing wind risk Continue reading “A big SLABBED good-bye to David Maurstad – wish we could have missed you sooner”

No way to make friends – Japanese insurer goes belly-up from US stock woes

Sop’s the one with the insight to know if this is an isolated event or the tip of the iceberg. I just know sharing the financial crisis here with others is no way to make friends – regardless of what you learned in kindergarden.  h/t CLS

A medium-sized Japanese insurance company went bankrupt Friday, becoming the first Japanese financial company to collapse on the fallout from the global credit crisis.

“We are deeply sorry and offer apologies from the bottom of our hearts,” Yamato Life Insurance Co. President Takeo Nakazono said, bowing deeply on nationally televised news.

A bow to you, too, Mr. Nakazono, for taking responsibility and offering an apology – and for the example of what should have happened here.

Most Japanese banking and other institutions have averted the serious damage of their U.S. and European counterparts from the U.S. financial crisis. Continue reading “No way to make friends – Japanese insurer goes belly-up from US stock woes”

A Picture is Worth A Thousand Words….

Current presidential election market price graph courtesy of the Iowa Electronic Markets. The election will not be close IMHO.

For those on the right that espouse the virtues and efficiencies of the a free market place It doesn’t look good for your main man McCain. Bob Dole once remarked that viagra commercials paid very well….

sop