Far be it from me to improve upon the excellent, though government shielded, coverage of the credit default originating in Dubai. Apparently rooted in a hangover from a major commercial building boom, this default does have some parallels in Western economies. But, we must once again raise the issue of credit default swaps and counter party risk. Worldwide, zombie.
They say if you want to get out ‘bad’ news, the best time is on a Friday evening. Even better is on the day before a major holiday, like Thanksgiving. Well, Happy Thanksgiving! It seems our friends at the NAIC have been reading the public relations playbook and just released an outline of the new non-agency.
“Be careful what you wish for” could be the most appropriate saying for the insurance industry, when reviewing the NAIC’s latest attempt to diminish increasing risk based capital charges (RBC) at mostly large, capital starved insurers. One only has to visit the NAIC’s website and note how proud they are of the latest change to RBC.
With apologies to Marx and Engels, this may also sound like the clarion call for those responsible for regulating financial institutions. We have already seen developed countries discuss how regulations on banking, derivatives, etc, can better be coordinated…all the better to keep the financial players from picking the best domicile for their activity. And, now,.