US politicians sure like to keep us guessing.
Following on from last week’s installment (Mystery bank on the brink, which did indeed turn out to be Wachovia), senate majority leader Harry Reid, had this to say yesterday, regarding the bailout bill:We don’t have a lot of leeway on time. One of the individuals in the caucus today talked about a major insurance company.
A major insurance company — one with a name that everyone knows that’s on the verge of going bankrupt. That’s what this is all about.
His remark sent insurers spiralling, with shares in MetLife, the biggest US life assurer, falling nearly 14 per cent, and Prudential Financial, the second- biggest insurer, down more than 7 per cent. Life insurer CDS widened (see Bank of America chart below), before a spokeswoman for Reid denied his earlier comments:
His remark sent insurers spiralling, with shares in MetLife, the biggest US life assurer, falling nearly 14 per cent, and Prudential Financial, the second- biggest insurer, down more than 7 per cent. Life insurer CDS widened (see Bank of America chart below), before a spokeswoman for Reid denied his earlier comments:
Senator Reid is not personally aware of any particular company being on the verge of bankruptcy. He has no special knowledge about [a bankruptcy] nor has he talked to any insurance company officials … Rather, his comments were meant to refer to the conditions in the financial sector generally. He regrets any confusion his comments may have caused.Oops.
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