Thursday, October 02, 2008

This is why Harry Reid should be sent back to Searchlight, NV

You know this isn't my blog's focus here at Dinah Lord, but I'd just like to point out to everyone how that fool Harry Reid's big mouth is wreaking havoc in the US insurance market.

Thanks a lot Harry, you ass.

This is JUST what the jittery markets needed.

"Reid also warned that a member of the Democratic caucus had warned a major US firm was among those at the risk of foundering if a bailout bill was not passed soon.

"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 is on the verge of going bankrupt.

"That is what this is all about."

Reid did not identify the company, and it was not immediately clear which firm he was referencing."

Hartford, Prudential, MetLife Credit Swaps Widen to Records

The cost to protect against default by Hartford Financial Services Group Inc., Prudential Financial Inc. and MetLife Inc. soared to records and shares fell on speculation turmoil in financial markets may be spreading to insurers. Credit-default swap traders were demanding upfront payments to protect against a default by Hartford, Prudential and MetLife for five years. Shares of Hartford fell as much as 13 percent; MetLife by as much as 23 percent; and Prudential by as much as 4.3 percent on concern the companies face losses as the value of fixed-income assets plunge amid the worst financial crisis since the Great Depression.

U.S. Senator Harry Reid may have helped push the markets into a panic after saying yesterday that a ``major'' insurer may be on the brink of failure, Donelan said.

Companies are now being forced to come out and issue statements denying Harry's rash claim which seems to be nothing more than anecdotal. (At least I sure hope so.)

From Metlife: The statement yesterday by Senate Majority Leader Harry Reid does not apply to MetLife. MetLife is financially sound and has high ratings from all of the major insurance ratings agencies. MetLife is fully able to meet all its obligations.

Stocks are reacting accordingly: Prudential down 9% Hartford down 11% at this writing.