The U.S. District Court for the Central District of California recently denied a motion to strike and allowed a plaintiff to pursue treble punitive damages against his insurer for the insurer’s alleged bad faith. 

…
Read More California Federal Court: Insured Plaintiff Can Seek Treble Punitive Damages For Insurer’s Alleged Bad Faith

The Federal Reserve Bank of New York has agreed to issue AIG a two year, $85 Billion secured revolving credit facility in return for a 79.9 percent equity interest in AIG and the right to veto the payment of dividends to common and preferred shareholders. 

…
Read More Federal Reserve Agrees to $85 Billion Loan to AIG

Lehman Brothers Holdings Inc., the holding company for the fourth-largest United States investment bank, filed for protection under Chapter 11 of the United States Bankruptcy Code on September 15, 2008, marking the largest US bankruptcy filing in history.  Following the filing in the Southern District of New York, the directors of Lehman Brothers International (Europe) and three of its UK subsidiaries applied for administration (a process similar to Chapter 11) in the UK. 

…
Read More EAPD Issues Advisory Regarding Insolvency Proceedings in the US, UK and Japan

As the New York Mets’ players are focused on reaching the post-season, team management has other concerns – insurance.  Billy Wagner, the team’s closer, underwent ulnar collateral ligament reconstruction (commonly known as Tommy John surgery) last week and is likely to miss the entire 2009 season. …
Read More The New York Mets’ Insurance Concern

In Buckley Towers Condominium, Inc. v. QBE Ins. Co., No. 07-22988-CIV, 2008 WL 2645680 (S.D. Fla., Jun. 26, 2008), a Florida federal court found that financial or contractual documents between an insurer and its adjusting agent are not discoverable in a coverage action, but the agent may be deposed as to his knowledge of financial incentives, and such testimony may be admissible for impeachment purposes. …
Read More Florida District Court Disallows Production of Documents Regarding Agent’s “Loss Ratio Bonuses” But Holds That Plaintiff May Nevertheless Depose Agent for Impeachment Purposes

The FSMT has handed down its decision in the case of Asgar Ali Ravjani (trading as Astrad Finance) v Financial Services Authority, which involved the failure to disclose a discharged bankruptcy to the FSA. …
Read More UK: Decision of the Financial Services and Markets Tribunal (FSMT) Emphasises the Importance of Disclosing All Relevant Information to the FSA

The New York Attorney General recently announced that it had reached a settlement with Fidelity Investments regarding Fidelity’s involvement with auction rate securities (“ARS”).  The settlement, which calls for Fidelity to return $300 million to its customers by the end of the year, is the first settlement reached with a downstream retail broker. 

…
Read More Fidelity Reaches Auction Rate Securities Settlement With New York Attorney General

Bank of America recently announced that it has reached a settlement with the Massachusetts Securities Division concerning its involvement in the Auction Rate Securities (“ARS”) market.  (Click here for Bank of America’s press release.) …
Read More Bank of America Reaches Auction Rate Securities Settlement with Massachusetts Securities Division

As reported on our blog earlier this week, the Governor of the Bank of England, Mervyn King, confirmed that the existing special liquidity scheme would end as planned on 21 October and be replaced by another scheme. …
Read More UK: Bank of England Extends Special Liquidity Scheme