PREVENTING MEMORY LAPSES
Your reflections on sidecars (editor's letter, Risk & Insurance®, March 1, 2006, page 8) reminds everyone of memory lapses. Evidently, everyone in the insurance business assumes Eliot Spitzer and the regulators and revenue collectors will forget AIG's defense. In fact, there was no defense, only evasion. The punitive damages were not as serious as the long-term impact on hedge funds and offshore bank accounts. The NSA, the IRS, several EU countries, Japan and China would like to know: "Where's the beef?" A mild indication of this came from Dubai and the ratings agencies' urgent request for information.
San Luis Obispo, Calif.
August 1, 2006
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