BerkeleyBob

Wall Street Breakfast: Must-Know News

I have been ranting about socialism for the rich, capitalism for the poor for a while now. Why should top rated insurers need TARP funding? Perhaps the relationship of state v. federal regulation for adequacy reserve, etc. needs re-examination. If they have taken a hit on their annuities or got involved on the wrong side of a CDS or other derivative transaction, what does that say about their fiduciary relationship to their policy holders (and in the case of a mutual, owners)? What does it say about their ability to manage risk? The huge loss in a substantial position in B of A is a resounding loss of no confidence--the financials benefitted from the easing of mark to market, but this sector is a long way from home free. It is possible, just very difficult, to make money in this market.