An increase in data breaches affecting various  industries, including banking, insurance and other financial services, has been profiled recently.  These developments require companies to anticipate problems, develop new responsive policies and protective procedures, and react quickly to near-crisis situations resulting from data breaches. 

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Read More Information Security Breaches and Appropriate Responses – New Mandatory Security Rule in Massachusetts and Privacy Policy in Connecticut

As we discussed here, the Senate voted on a revised version of the $700 billion bailout bill last night.  After more than three hours of floor debate, it passed by a vote of 74 to 25.  The House is expected to vote on the Senate’s version of the legislation on Friday. 

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Read More UPDATE: Senate Passes Revised Bailout Bill, Now Up to the House

The United States District Court for the Southern District of New York recently dismissed for a second time a federal securities class action against American Express Co. (“Amex”).  The action, entitled In re: American Express Co. Securities Litigation, involves substantial losses by Amex from investments by one of its subsidiaries in high-risk, high-yield debt instruments. 

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Read More S.D.N.Y. Dismissal In Amex Indicates How Courts Should Analyze Suits Spawned By Credit Crisis

A case that began more than a decade ago has reached judgment in the Supreme Court of Bermuda.  The case, Lisa S.A. v Leamington Reinsurance Company Ltd and Avicola Villalobos S.A. 1999: No. 108/2001 No 79, concerned a Guatemalan company, Lisa SA (Lisa), which brought an action against Avicola Villalobos S.A. (AVSA) also a Guatemalan company and Leamington Reinsurance Company Ltd (Leamington) a Bermuda captive reinsurer which reinsured the companies in the Avicola group only. 

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Read More Bermuda Judge Rules on Guatemalan Companies’ Family Feud Case

With the House of Representatives not set to meet again until Thursday, the Senate has stepped in with a revised version of the $700 billion bailout bill, which it hopes will garner greater support in the House of Representatives.  Last Monday, the House of Representatives rejected the Emergency Economic Stabilization Act of 2008 (the “Act”) by a vote of 228-205. 

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Read More BREAKING NEWS: Senate Proposes Revised Bailout Bill, Will Vote Tonight

The United States District Court for the Northern District of California recently held that a securities fraud claim related back to a notice of circumstances given by the insured to its primary and excess D&O insurers concerning an earlier patent infringement case. 

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Read More Securities Claim Relates Back to Notice of Circumstances Regarding Patent Infringement Suit

In early 2007, a purported class of investors in NovaStar Financial Corporation, a residential mortgage lender that made a percentage of its loans to subprime borrowers, sued NovaStar and certain of its directors and officers in the United States District Court for the Western District of Missouri. …
Read More NovaStar Plaintiffs Appeal Subprime Dismissal

As we previously reported here, Rep. Barney Frank’s (D-MA) bill, H.R.6965, which would temporarily extend the NFIP for an additional seven months, was passed by the House of Representatives and the Senate.  The National Flood Insurance Program (“NFIP”) was set to expire at the end of September. 

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Read More UPDATE: Congress Passes NFIP Short-Term Extension

The FSA has recently issued a DP in preparation for Solvency II. Entitled “Insurance risk management: The path to Solvency II”, the DP explains key elements of the Solvency II regime and identifies areas that UK insurers should be considering over the next 18 months to prepare for implementation in 2012. 

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Read More UK/EU: FSA Issues Discussion Paper (DP) on Solvency II