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View Diary: A.I.G. May Sue U.S. Gov’t For $25 Billion As It Airs “Thank You, America!” TV Ad (205 comments)

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  •  Somewhat, but with insurance, goes deeper (17+ / 0-)

    Insurance companies are largely state regulated, not federal. Back in the 1970s and prior, insurance companies were largely prevented from holding these type of investments. They were prevented from holding derivatives, had % limits on their portfolio for real estate and stocks, etc. When I was a CPA back in the 1990s, I worked on the audit of an insurance company that had been in liquidation for several years that got in trouble pushing the envelope on real estate holdings.

    Nowadays, there are fewer restrictions, if any, so you have insurance companies with private equity investments, in hedge funds, derivatives, etc. It's only a matter of time before the next one crashes.

    Liberalism is trust of the people tempered by prudence. Conservatism is distrust of the people tempered by fear. ~William E. Gladstone, 1866

    by absdoggy on Tue Jan 08, 2013 at 07:22:12 AM PST

    [ Parent ]

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