FED OFFICIAL GOT WAIVER ON AIG
New York Federal Reserve Bank President William Dudley received a waiver allowing him to keep investments in firms the Fed was rescuing at the height of the financial crisis when he was a top staffer, a congressional watchdog agency found.
"(Three) days after the Federal Reserve Board authorized FRBNY (the Federal Reserve Bank of New York) to assist AIG--the then-FRBNY president granted...a waiver to a senior management official with financial interests in AIG and G.E. (General Electric) who was involved in decision making related to these two companies," according to a recent report from the U.S. Government Accountability Office.
At the time, Treasury Secretary Timothy Geithner was the president of the New York Fed.
The office of Sen. Bernie Sanders, I-Vt., called the GAO's finding "disturbing." Dudley, who at the time was the head of the New York Fed's markets group, was among a number of officials and contractors granted waivers allowing them to keep investments at firms receiving emergency assistance.
The New York Fed declined to comment on the report.
ZURICH ASKS COURT TO VACATE SONY CLAIMS
One of Sony Corp.'s insurers has asked a court to declare that it does not have to pay to defend the media and electronics conglomerate from mounting legal claims related to a massive data breach earlier this year.
The dispute comes as demand soars for "cyber insurance," with companies seeking to protect themselves against customer claims and associated costs for data and identity theft.
How to write such policies has become a huge subject of debate in the insurance industry.
Zurich American Insurance Co asked a New York state court in documents filed in July to rule it does not have to defend or indemnify Sony against any claims "asserted in the class-action lawsuits, miscellaneous claims, or potential future actions instituted by any state attorney general."
Zurich American, a unit of Zurich Financial Services, also sued units of Mitsui Sumitomo Insurance, AIG and ACE Ltd, asking the court to clarify their responsibilities under various insurance policies they had written for Sony.
In April, hackers accessed personal data for more than 100 million users of Sony's online video games. Sony has said it could not rule out that some 12.3 million credit card numbers had been obtained during the hacking.
In May, Sony said it was looking to its insurers to help pay for its massive data breach.
RIMS TO BEGIN STANDARDS DEVELOPMENT
The Risk and Insurance Management Society (RIMS) has been approved as an accredited standards development organization by the American National Standards Institute (ANSI) Executive Standards Council, RIMS announced.
This status will increase RIMS' profile in the standards and practices arena by enabling it to take a lead role in shaping and developing risk management standards.
--Compiled by staff from news and wire reports
September 1, 2011
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