The First Circuit Court of Appeals recently held that the fraud and dishonesty exclusion in an errors and omissions policy issued to a mortgage originator and broker excluded coverage for the fraudulent acts of one of its employees in the loan origination process.
Read More Mortgage Broker’s E&O Policy Excludes Coverage for Fraudulent Acts of Its Employee in Connection with Subprime Mortgage Loan Application and Documents
Bermuda Monetary Authority (“BMA”) Monitoring the Impact of Sub-Prime
By Troutman Pepper Locke on
Posted in Bermuda, Subprime/Credit Crisis Developments
The BMA is taking a proactive role in managing the ripple effects of sub-prime on Bermuda in a way that mitigates risk effectively. In response to the sub-prime mortgage crisis, the BMA has been conducting market surveys since August 2007 to assess the impact of this global issue. …
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Companies Act 2006: Repeal of the Financial Assistance Prohibition from 1 October 2008
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
Further sections of the Companies Act 2006 came into force on 1 October 2008. One of the provisions implemented, by virtue of the Companies Act 2006 (Commencement No 5 Transitional Provisions and Savings) Order 2007, was the repeal of the restrictions on financial assistance by a private company or any of its private subsidiaries for the acquisition of the company’s shares (including, as a consequence, the statutory “whitewash” procedure). …
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MBIA Closes Reinsurance Agreement with Financial Guaranty Insurance Company
By Troutman Pepper Locke on
MBIA Inc. announced yesterday that MBIA Insurance Corporation (“MBIA”), its financial guaranty insurance company subsidiary, had completed a reinsurance transaction with Financial Guaranty Insurance Company (“FGIC”) whereby MBIA will reinsure FGIC’s risks that consist entirely of U.S. public finance bonds with total net par outstanding of about $166 billion.
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Read More MBIA Closes Reinsurance Agreement with Financial Guaranty Insurance Company
New York State Insurance Department and Bermuda Monetary Authority Sign Cooperation Agreement
On September 29, 2008, New York State Insurance Superintendent Eric Dinallo and Chief Executive Officer Matthew Elderfield of the Bermuda Monetary Authority (“BMA”) signed a memorandum of understanding (the “MoU”). …
Read More New York State Insurance Department and Bermuda Monetary Authority Sign Cooperation Agreement
UK: FSA Update on Progress Toward December Deadline for Treating Customers Fairly
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Director of the FSA’s Treating Customers Fairly initiative (TCF) has given a speech on firms’ progress toward meeting the December 2008 deadline for implementation, showing that while advances have been made, much work still needs to be done. …
Read More UK: FSA Update on Progress Toward December Deadline for Treating Customers Fairly
U.S. Reinsurance Under 40s Group’s ReIndustry Speak — October 23
By Troutman Pepper Locke on
Please join the U.S. Reinsurance Under 40s Group at their ReIndustry Speak on October 23, sponsored by Swiss Re, to hear Jim Fiore (QBE the Americas, Chief Operating Officer) and Alan J Levin (Edwards Angell Palmer & Dodge, co-chair of Insurance & Reinsurance Department), speak about our industry.
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Information Security Breaches and Appropriate Responses – New Mandatory Security Rule in Massachusetts and Privacy Policy in Connecticut
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.
UPDATE: Senate Passes Revised Bailout Bill, Now Up to the House
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
S.D.N.Y. Dismissal In Amex Indicates How Courts Should Analyze Suits Spawned By Credit Crisis
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.