News

U.S. federal securities class action suits in 2008 rose 29 percent over the previous year fueled by the global financial crisis, according to a consulting firm report released yesterday.

A key congressman asked U.S. banking officials to investigate whether foreign institutions received preferential treatment by having their counterparty claims against AIG paid off while U.S. banks were asked to accept pennies on the dollar.

Former American International Group Chief Executive Officer Maurice Greenberg arrived here to tell a House panel how the government should fix AIG and heard a congressman call him the wrong witness because of his legal problems.

Legislation to impose some federal regulation on insurers and create a federal insurance charter mechanism has been introduced by two House members who said the American International Group meltdown underscores the need for their measure.

Homeowner health complaints related to Chinese drywall products point up a need for contractors to obtain enhanced insurance coverage, but such protection may not be available according to a brokerage expert.

The federal government is undertaking a multipronged probe of the bonuses paid American International Group executives, including an initiative by the Department of Justice of the options available to recover the funds.