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Monday
3/31/2008
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Your Insurance News "Strategic
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Read online at
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Walt Podgurski, CLU, CES, Publisher & Editor
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Auto &
Home @ The Workplace
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Are you offering
your employer clients the option to make auto and homeowners
insurance available to their employees via payroll deduction? If
not, you can meet with all of the major providers at one time at
Workplace Benefits Mania 2008. Here are the key agenda items you
want to attend.
Wednesday Morning - 07/30/08 -
9:30 a.m. -
11:30 a.m. - Auto & Home @
The Workplace - Learn how to implement a "turn-key" auto &
homeowners solution for your employer accounts. This could
generate a substantial ever-increasing revenue stream for your
agency and other than the initial approval, the enrollment and
case management is completely outsourced to billion-dollar
companies that understand this market.
(Also of interest)
Tuesday Afternoon - 07/29/08
- 2:10 p.m. - 2:50 p.m. -
National
Insurance & Brokerage Houses / Health Brokers & Workplace
Benefits - voluntary benefits have become an increasingly
important part of employer's benefit strategies. Ignoring this
revenue stream also leaves the door open for competition to become
one of the insurance advisers in your accounts. This session will
focus on building your strategy for introducing voluntary benefit
life & health solutions into your employer accounts.
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Workplace Benefits Mania
2008
July 28, 29 & 30 - Caesars Palace, Las Vegas, NV
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Industry "Movers & Shakers" Attendees |
90 Leading Industry Exhibitors |
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Field Proven Expert Speakers |
Special 4-hour "Influence" workshop
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Build your voluntary benefits revenue stream!
Workplace Benefits Association - 888-282-1765 -
www.workplacebenefits.org
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Daily Quote:
"Ability is
nothing without opportunity." - - Napoleon Bonaparte
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The Lehman Brothers headquarters is
seen in New York January 30, 2008.
REUTERS/Shannon Stapleton
Lehman hit by $355 mln fraud, blames Marubeni-source
Sun Mar 30, 2008 2:50am EDT
NEW YORK/TOKYO (Reuters) - Lehman Brothers (LEH.N: ) was
fleeced out of more than $355 million in a fraud the U.S. investment
bank believes was perpetrated by two employees at Japanese trading house
Marubeni Corp. (8002.T: ), according to a person briefed on the matter.
The fraud may have hit other financial institutions as well, according
to the source, who spoke on condition of anonymity.
If Lehman's arguments are true, the scamsters perpetrated one of the
more sophisticated corporate con jobs since Enron set up a fake trading
floor to impress analysts. Lehman believes the scam included forged
documents and an imposter.
Lehman is trying to recover a loan to a fund headed by Asclepius Ltd --
a now-bankrupt unit of LTT Bio-Pharma Co (4566.T: ). Lehman had believed
the money, supposedly to be used to finance medical leases, was backed
by Marubeni.
The bank believes Marubeni is now shirking its obligations to pay back
the partnership between Lehman, Marubeni and the fund, the person told
Reuters.
Marubeni, which fired the two employees on March 10, said the two
employees may have been manipulated by the former president of Asclepius,
that Marubeni had not approved the leases and that police are working on
the case.
The employees were contractors, spokesman Hirokazu Iwashima said, adding
that there was "no involvement by Marubeni as a company."
Lehman plans to sue Marubeni, spokesmen in Tokyo and New York said. They
declined to say how much money it had put into the business or elaborate
on what exactly the former Marubeni employees did.
($1=99.12 Yen)
(Reporting by Chikako Mogi and Mayumi Negishi in Tokyo and Dan Wilchins
in New York; editing by Ian Jones and Lincoln Feast)
© Reuters 2008 All rights reserved
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Flowers in 3.5 bln stg bid for
Friends Prov-sources
Sat Mar 29, 2008 3:15pm EDT
By Tom Bergin
LONDON, March 29 (Reuters) - U.S. private equity firm JC Flowers has
made an indicative offer to buy UK insurer Friends Provident (FP.L: )
for around 149 pence per share, or 3.5 billion pounds ($6.99 billion),
sources familiar with the matter said on Saturday.
Friends Provident's directors were considering the approach, made in a
letter last week, the sources said. The level of the offer would be
reduced if Friends goes ahead with plans to pay a 5.6 pence per share
dividend, the sources added.
Shares in the troubled insurer closed at 120 pence on Friday in a market
in which financial shares have suffered as a result of the sub-prime
crisis. (Reporting by Tom Bergin; editing by Keith Weir)
© Reuters 2008 All rights reserved
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Treasury may unveil tighter
financial rules soon
Fri Mar 28, 2008 6:58pm EDT
By John Poirier
WASHINGTON (Reuters) - The Treasury Department may unveil on Monday
fresh plans to tighten rules on financial market players to ward off a
future credit market crisis like the one currently threatening to drag
the economy into a deep recession.
The department announced on Friday afternoon that Treasury Secretary
Henry Paulson will deliver a speech in the ornate Cash Room to "discuss
issues relating to financial institutions and financial markets but
refused any further details
Industry sources said Paulson may offer a set of recommendations for
overhauling the regulation of banks, securities, commodities and
insurance.
Several trade groups representing a cross-section of the financial
services sector as well as state officials have been invited to attend
the Monday speech.
(Reporting by John Poirier, Writing by Glenn Somerville; Editing by Jan
Paschal)
© Reuters 2008 All rights reserved
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1.
Willis will not
resume "contingent commissions" |
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NEW
YORK, March 27 (Reuters) - Willis Group Holdings will not boost
the insurance brokerage's bottom line by resuming the practice
of taking so-called "contingent commissions," a controversial
type of incentive payment that was a common practice until a few
years ago.
"We
were the first one to disavow contingents and we are still
contingent-free," said Chief Executive Joseph Plumeri, in an
interview with Reuters late on Wednesday.
Contingent commissions, which had been a lucrative source of
income, were paid by insurers to brokers in exchange for
business. The practice raised conflict of interest concerns
since brokers are meant to represent their clients' best
interests, not those of insurers.
About three years ago, the commissions were renounced by the
largest brokerages, including Marsh & McLennan Cos Inc (MMC.N:
), Aon Corp (AOC.N: ) and Willis, which is the third- largest insurance
brokerage, after a regulatory probe put a spotlight on the
practice.
A
2004 lawsuit by then-New York Attorney General Eliot Spitzer
against Marsh & McLennan revealed how widespread the practice
was.
Contingent commissions also led to bid-rigging charges against
some, including Marsh & McLennan, which paid $850 million in
fines and restitution as part of a settlement.
But
more recently, some brokerages have said they will consider
accepting some form of payment from insurers, referring to the
fee as a "supplemental commission."
Willis is not included in those, according to the company.
"We
have been transparent and feel philosophically very tied to
that," Plumeri said. "We settled in March 2005. Spitzer did not
sue us. We did not have to apologize. It was basically a
statement of discontinuance."
Plumeri, who joined Willis in 2000 after a long career with
Citigroup Inc (C.N: ), plans to one day
write a book about such experiences. He recently extended his
contract through April 2011.
CONTINGENT SHORTFALL
While operating margin shrank after Willis stopped accepting
contingent commissions, Plumeri said he has since been
successful in reversing that.
The
brokerage has forecast profit growth of more than 40 percent by
2010 and has posted steady margin improvement. [nN26351467]
In
2007 operating margin was 24 percent, and it sees that growing
to 28 percent by 2010.
Willis has also put in place initiatives to trim costs and boost
efficiency, including setting up an office in Mumbai, India, for
processing and administrative services.
Plumeri, 64, said it did take someone like Spitzer to clean up
industry practices.
"Absolutely, I did say to Spitzer in my first visit to him that
I did not think they (contingent commissions) were good and that
I did not like them, but it was an unlevel playing field, with
most people still taking them."
He
would not comment on whether the former attorney general was too
heavy-handed in his approach.
"I
thought the whole discussion on contingents was correct, but I
won't comment on the style," Plumeri said.
Spitzer, who zealously uncovered a wide range of corporate
abuses and in some cases demanded executives step down,
successfully ran for New York governor in 2007, but resigned
earlier this month amid a sex scandal.
Plumeri said Willis has agreed to a 2.5 percent commission from
insurers in Europe, offering the payment to clients. He said the
commission was different from contingent, or supplemental
commissions.
"We
said to the client that x,y,z carrier is willing to give us 2.5
percent -- If you want it, we will give it to you, or if you
don't want it and think we deserve it, we will take it, and if
you don't think either one should have it, we'll give it back,"
said Plumeri, adding that rivals had preceded it in accepting
the payment.
"We
thought it would be remiss of us not to say to the client, there
is 2.5 percent here, do you want it?"
The
practice is limited to Europe and not one being adopted in the
United States, Plumeri added. (Editing by Andre Grenon)
©
Reuters 2008 All rights reserved |
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2.
TowerGroup: Losses
Resulting from Mortgage Fraud in U.S. Will Reach $2.5 Billion in 2008
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NEEDHAM, Mass.--(BUSINESS WIRE)--Falling home prices and inappropriate
mortgage underwriting have grabbed the headlines and much of the blame
for mortgage credit woes in recent months. But the significant rise in
mortgage fraud over the past 10 years is another important trend. New
research from TowerGroup predicts that losses from mortgage fraud will
reach $2.5 billion (USD) in 2008 and that comparable losses will
continue for several years thereafter. TowerGroup anticipates that
lenders will respond by deploying technology tools to assist in the
detection and prevention of mortgage fraud and that their annual
spending on such tools will reach several hundreds of millions of
dollars in the next few years.
Mortgage fraud is difficult to track and takes many forms — for example,
fraudsters cheating borrowers out of their properties with false
promises of foreclosure avoidance or using the identity of a real person
(often without his or her knowledge) to fraudulently purchase one or
more properties. TowerGroup has developed a graphic that helps
categorize the different motives and methods of mortgage fraud:
http://www.towergroup.com/research/content/page.jsp?pageId=2762.
“Much of the growth in mortgage fraud has been due to the
ever-increasing sophistication of fraudsters’ schemes to fabricate the
values of mortgaged property,” said David Hamermesh, senior analyst in
the Consumer Lending research service at TowerGroup. “Fraud prevention
is best done proactively, before the loan closes. Lenders must invest in
analytical tools to identify loans at a high risk for fraud, while
technology vendors must do more to improve the predictive power of the
analytical tools they provide.”
www.towergroup.com |
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3.
Global High Net Worth
Assets Reach $50 Trillion, But Economic Woes Trim Growth Rate to 9%
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U.S. Wealth Management Market in Transition, Says Oliver Wyman Study
NEW YORK--(BUSINESS WIRE)--The assets owned by high net worth
individuals (HNWI) reached $50 trillion in 2007, according to a study of
the global private banking and wealth management market by Oliver Wyman,
the management consultancy. The firm predicts growth of HNWI assets will
slow to 9% per year from the rate of 11% that prevailed for the last
five years. Nevertheless, HNWI assets are expected to reach $75 trillion
in 2012.
In
North America, HNWI assets in 2007 stood at $20 trillion (40% of the
global total) and are predicted to grow 8% per year, slightly below the
global average, to $29 trillion in 2012.
Wealth management: global opportunities, global challenges
The study, The Future of Private Banking: A Wealth of Opportunity?,
notes that the percentage of wealth that is professionally managed or
advised is low – about 50% – meaning that, despite slowing asset growth,
the business opportunity for wealth management firms and private banks
worldwide is large. However, the market to manage wealth is expected to
become more competitive as new players enter the industry and cater to
changing client needs.
The study reveals that keeping assets onshore is an emerging trend and
building local operations to serve wealth locally is a priority for
wealth management executives. This is complex, though, due, in part, to
the scarcity of skilled relationship managers in many parts of the
world.
www.oliverwyman.com |
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4.
JPMorgan To Pay $2
Million To Settle SEC Fraud Case |
|
Thu Mar 27,
2008 6:15pm EDT
WASHINGTON
(Reuters) - JPMorgan Chase & Co (JPM.N: ) has
agreed to pay $2 million to settle charges its subsidiaries helped
now-bankrupt National Century Financial Enterprises carry out a fraud
that resulted in $2.6 billion of investor losses, the U.S. Securities
and Exchange Commission said on Thursday.
The SEC
said JPMorgan Chase Bank and Bank One served as indenture trustees for
National Century, a Dublin, Ohio, healthcare financing company, from
1999 until 2002 when the company collapsed.
The SEC
said that JPMorgan helped National Century make large improper transfers
among program accounts, which caused collateral shortfalls and
contributed to the company's downfall.
(Reporting
by Karey Wutkowski, Editing by Toni Reinhold)
© Reuters
2008 All rights reserved |
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5.
California May
Create Bond Insurer, Rival Buffett |
|
Thu Mar 27,
2008 7:03pm EDT
NEW YORK
(Reuters) - California Treasurer Bill Lockyer is exploring the
possibility of having state pension funds create a new bond insurer, his
spokesman said on Thursday.
Lockyer has
no immediate plans to use Berkshire Hathaway's (BRKa.N: ) new bond insurance unit following congressional testimony
earlier this month by Ajit Jain, the head of the Berkshire unit, said
Tom Dresslar, the spokesman for the California treasurer.
In his
testimony, Jain defended using different ratings for municipal and
corporate issuers that created the need for bond insurance, Dresslar
said.
Lockyer is
trying to change this double-rating system because it drives up
borrowing costs for states and local governments. He also wants state
pension funds to pressure Standard & Poor's to modify how it rates
municipal bonds.
(Additional
reporting by Joan Gralla)
(Reporting
by Anastasija Johnson; Editing by Jan Paschal)
© Reuters
2008 All rights reserved |
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6.
Consumer Advocates Call
for Governor to Make Good on His Promise to Protect Patients From
Illegal Cancellations of Health Insurance |
|
Health Care Regulators Accused in Hearing of "Glacial Pace" in Stopping
Post-Claim Rescissions, Failing to Restore Coverage to Victims
SACRAMENTO, Calif., March 27 /PRNewswire-USNewswire/ -- California's
Department of Managed Health Care has not ordered Blue Cross to restore
insurance coverage in any of 90 cases of illegal rescission found by the
department's own investigators, consumer advocates revealed during a
hearing in the state Senate's Health Committee.
The Department of Managed Health Care must move forward now with
regulations to stop these illegal cancellations, said Consumer Watchdog
(formerly the Foundation for Taxpayer and Consumer Rights), and restore
coverage lost by innocent patients who have been left not only
uninsured, but uninsurable.
DMHC Final Report, Non-Routine Medical Survey of Blue Cross of
California Available at:
http://www.dmhc.ca.gov/library/reports/med_survey/surveys/303full032307.pdf
Consumer Watchdog (formerly The Foundation for Taxpayer and Consumer
Rights) is a non-profit, non-partisan organization. |
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7.
Citi
Says Lehman Has Ample Liquidity |
|
Fri Mar 28,
2008 8:01am EDT
(Reuters) -
Lehman Brothers Holdings Inc (LEH.N: ) has ample
liquidity to run its business and will generate positive earnings and
grow book value per share this year, said Citigroup analyst Prashant
Bhatia, who upgraded the stock to "buy" from "hold" on valuation.
"With $34
billion in liquidity at the parent company, the ability to get access to
over $200 billion in liquidity from the Fed's primary dealer credit
facility, and its ability to tap the term auction facility, access to
liquidity is a non-issue," Bhatia wrote in a note to clients.
He has a
price target of $65 on the stock, which was up nearly 7 percent Friday
to $41.40 in trading before the bell. Shares of the fourth largest U.S.
investment bank closed at $38.71 Thursday on the New York Stock
Exchange.
The
analyst, who views current valuation of the stock as an extremely
attractive entry point for the stock, said he sees 70 percent upside in
Lehman shares.
(Reporting
by Tenzin Pema in Bangalore; Editing by Bernard Orr)
© Reuters 2008 All rights reserved |
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8.
Leveraged deals nag
Wall Street banks |
|
Fri Mar 28,
2008 8:04am EDT
NEW YORK
(Reuters) - Leveraged-buyout deals have become gum on the shoe of many
investment banks, adding to the list of reasons that Wall Street firms
will likely face billions more in write-downs in the first quarter.
Write-downs
are expected to trigger quarterly losses at some banks and brokers, and
as long as these companies are wrestling with bad assets, it will be
difficult for their shares to rise much, analysts said.
Reports
this week that a $20 billion buyout of Clear Channel Communications Inc
(CCU.N: ) was stalling underscored the problems
that banks and brokers face by keeping leveraged loans on their books.
Clear Channel said on Thursday it had won a temporary restraining order
from a Texas judge that prevents banks from reneging on their
commitments to finance the deal.
Banks once
rushed to finance leveraged buyout deals, which can generate big fees
and mountains of other investment banking business. Now these deals look
increasingly toxic. The six banks involved in Clear Channel face
potential losses of about $3 billion to $4 billion on the deal.
Skyrocketing defaults on subprime mortgages broadened into an all-out
credit crisis about eight months ago, seriously hurting investor demand
for credit-related securities, including leveraged loans, the lifeblood
of LBOs.
Trouble in
the leveraged loan market hits Wall Street firms in at least two ways:
Banks are having trouble selling or syndicating loans they have already
funded, known as "hung loans," and banks are also writing down loans
they've committed to make, but have not yet funded.
(Additional
reporting by Emily Chasan and Paritosh Bansal; Editing by Brian Moss)
© Reuters 2008 All rights reserved |
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9.
Credit swaps
signaled market turmoil-IMF economist |
|
Fri Mar 28,
2008 8:04am EDT
WASHINGTON
(Reuters) - Market tools that price the risk of default were warning of
growing problems in U.S. and financial sectors as early as July 2007,
the International Monetary Fund's chief economist said on Thursday.
In a column
for the March issue of Finance and Development magazine, economist Simon
Johnson said it was now obvious that the most reliable indications about
the exact nature of the rapidly approaching financial sector problems
came from risk markets themselves.
"In fact,
looking back over the past six months or so, it's now apparent that
these markets have given us quicker and more accurate heads-up about
potential macroeconomic issues than have many conventional macroeconomic
indicators," he said.
Johnson
said the market's view on the default probability of various securities
was evident from the price of credit default swap spreads, or the price
of insurance that investors who want to hold a security pay to protect
themselves from the risk of a default.
Looking
forward, Johnson said if CDS spreads are a reliable indicator of
financial turmoil, "there's some rough sailing ahead."
(Reporting
by Lesley Wroughton; editing by Leslie Adler)
© Reuters
2008 All rights reserved |
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10.
Allied World Launches
U.S. Reinsurance Operations and Commences Business |
|
PEMBROKE, Bermuda, March 27 /PRNewswire-FirstCall/ -- Allied World
Assurance Company Holdings, Ltd (NYSE: AWH) today announced the official
launch of its U.S. reinsurance platform. The launch follows the
completion of Allied World's acquisition of Finial Insurance Company,
formerly known as Converium Insurance (North America) Inc., which closed
on February 29, 2008. The company is being renamed Allied World
Reinsurance Company to reflect Allied World's new reinsurance brand
identity, Allied World RE. http://www.awac.com. |
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11.
Financial Authors Scott
Burns and Laurence J. Kotlikoff Propose Strong Steps to End the Practice
of ''Insider Rating'' |
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New Federal Financial Authority Would Rate the Quality of Securities in
the Same Way the FDA Rates Food and Drugs
DALLAS--(BUSINESS WIRE)--Scott Burns, chief investment strategist for
AssetBuilder and one of America’s best-read financial columnists, and
Laurence J. Kotlikoff, Boston University economics professor and author,
recommend in a column to be published Sunday that the U.S. government
establish a Federal Financial Authority to rate securities – effectively
placing warning labels on high-risk investments.
Burns and Kotlikoff lay much of the blame for the subprime mortgage
crisis at the feet of credit rating agencies such as Moody’s and
Standard & Poor's, which granted asset-backed securities higher ratings
than they deserved. The authors say the agencies, whose fees are paid by
borrowers, acted in their own self-interest in a practice they call
“insider rating.”
www.AssetBuilder.com |
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12.
Bear Stearns
Chairman Sells $61.3 Million Of Stock |
|
Thu Mar 27,
2008 5:49pm
NEW YORK
(Reuters) - Bear Stearns Cos Inc (BSC.N: )
Chairman James Cayne sold $61.3 million of Bear shares on Tuesday,
according to a filing on Thursday.
The share
sale comes as Bear Stearns prepares to sell itself to JPMorgan Chase &
Co (JPM.N: ) in a deal worth about $9.32 a share
at current prices. That sale is expected to close by mid-June, assuming
a majority of shareholders approve it.
Cayne and
his wife sold 5.66 million shares at $10.84 apiece, the filing said.
(Reporting
by Dan Wilchins; Editing by Andre Grenon)
© Reuters
2008 All rights reserved |
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|
13.
Countrywide Exec
Gets $28 Million From Bank Of America |
|
Fri Mar 28,
2008 5:01am EDT
NEW YORK
(Reuters) - Bank of America Corp said it has agreed to pay $28 million
to Countrywide Financial Corp Chief Operating Officer David Sambol to
induce him to run the merged companies' consumer mortgage operations.
The amount,
which vests over three years, is 37 percent higher than the $20.4
million that Bank of America Chairman and Chief Executive Kenneth Lewis
was compensated in 2007 to run the second-largest U.S. bank.
(Editing by
Michael Urquhart)
© Reuters
2008 All rights reserved |
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|
14.
The First District
Court of Appeal Finds in Favor of Palm Medical Group – Decision
Reinstates $1.13 Million Judgment against State Fund, Reports Roxborough,
Pomerance & Nye |
|
SAN FRANCISCO--(BUSINESS WIRE)--Roxborough, Pomerance & Nye LLP today
announced that Palm Medical Group, Inc received a final victory from the
First District Court of Appeal which reinstated a $1.13 million judgment
(possibly $1.4 million after interest) in a dispute with State Fund
(Palm Medical Group v. State Compensation Insurance Fund (SCIF)) for
failure to institute fair procedures when considering medical clinics
for admission into its preferred provider network. |
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|
15.
Prudential Enhances
Pru1SolutionSM with the Addition of Full-Service Administrative Leave
Services |
|
–
Prudential’s Group Insurance expands its proprietary portfolio of
absence management services and products to offer clients a
single-source solution for absence management
NEWARK, N.J.--(BUSINESS WIRE)--Prudential Financial, Inc.’s (NYSE:PRU)
Group Insurance business announced today the introduction of its new
full-service, single-source solution designed to help clients administer
the Family Medical Leave Act and other company absence management
programs. This new service is part of Pru1SolutionSM – the company’s
proprietary portfolio of absence management services and products. The
full suite of Pru1Solution disability services is generally available to
all clients, with administrative leave services available to clients
with more than 1,000 employees.
www.prudential.com |
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|
16.
Progressive Takes #1
Spot on Auto Insurance Customer Respect Study |
|
Progressive.com Tops Study of 22 Insurance Web Sites
MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--Online car insurance customers
looking for a little R-E-S-P-E-C-T, don’t have to look any further than
progressive.com according to a recent study by The Customer Respect
Group (CRG). The group ranked Progressive #1 for positive Web-based
customer experiences. www.progressive.com |
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|
17.
Xerox Settles
Securities Lawsuit |
|
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Corporation (NYSE: XRX) received
preliminary court approval to settle a securities lawsuit that dates
back to 2000.
The company agreed to settle this case to avoid the time, expense and
uncertainty of litigation. Xerox did not admit to any wrongdoing as part
of the settlement, which is subject to final court approval and other
conditions.
Under the proposed agreement, Xerox will make cash payments totaling
$670 million and KPMG, LLP, Xerox’s former outside auditor and a
co-defendant, will pay $80 million into the settlement fund. Xerox
expects to make its payments in five installments during this year.
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18.
Judge says ex-Bear
exec can't join Morgan Stanley |
|
Fri Mar 28,
2008 6:06am EDT
NEW YORK
(Reuters) - A U.S. federal judge has temporarily blocked a former senior
Bear Stearns Cos (BSC.N: ) executive from
jumping to Morgan Stanley (MS.N: ) and
recruiting clients and colleagues to follow him.
U.S.
District Judge Nathaniel Gorton in Boston issued the order against
Douglas Sharon on Thursday, 10 days after the former Bear executive
director resigned, court papers show.
The judge
concluded that Bear was likely to succeed on the merits of the case and,
absent relief, would suffer irreparable harm.
(Editing by
Lisa Von Ahn)
© Reuters
2008 All rights reserved |
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|
19.
JPMorgan battles to
integrate unraveling Bear Stearns |
|
Thu Mar 27,
2008 4:11pm EDT
NEW YORK
(Reuters) - JPMorgan Chase & Co's (JPM.N: )
biggest challenge in integrating Bear Stearns Cos (BSC.N: ) may be making sure there's still something left to
integrate.
An exodus
of Bear employees, who could take their unsettled clients with them, may
further erode what value is left at the fallen investment bank.
"The people
who make money for Bear Stearns get in the elevator and leave every
night," said David Hinkel, who advises companies on merger integration
issues for consulting firm Towers Perrin. "Due to the nature of the
business, the people are the business."
Wesley
Fredericks, a partner at law firm Heller Ehrman said, "What often
happens in these situations is that the cream of the crop goes early and
can re-establish themselves somewhere else."
(Editing by
John Wallace)
© Reuters
2008 All rights reserved |
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20.
INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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This combination of two images of the Sydney
skyline were photographed at 8:20pm on March 28, 2008 (top) and
during earth hour at 8:20pm on March 29, 2008. Thousands of
lights that illuminate office buildings, public structures and
monuments were switched off Saturday evening, darkening the
city's iconic skyline for one hour, in an effort to publicise
the effects of climate change.
REUTERS/Tim Wimborne
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Molten gold, recycled from components of mobile
phones and other discarded electronic items, is poured into a mould at a
recycling plant in Honjo, north of Tokyo March 28, 2008. REUTERS/Yuriko
Nakao |
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An expense report signed by George
Washington that is part of a collection of historical American
manuscripts to be auctioned by Sotheby's can be seen in New York March
28, 2008. REUTERS/Lucas Jackson (UNITED STATES) |
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Canadian ice breakers lead sealing
vessels through the ice on the opening day of Canada's commercial seal
hunt in the Gulf of St. Lawrence March 28, 2008. Canada's annual seal
hunt, which the government promised would be more humane this year,
cranked up slowly on Friday because of thick ice. The government is
allowing hunters to kill up to 275,000 young harp seals on the ice floes
off Eastern Canada, but only three had been reported killed on the first
morning of the hunt in the Gulf of St. Lawrence. REUTERS/International
Fund for Animal Welfare/Stewart Cook/Handout (CANADA) |
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Two men fish at the bank of a river near the Belarussian village of
Zaslavl, some 20 km (12.5 miles) northwest of Minsk, March 28, 2008.
REUTERS/Vasily Fedosenko (BELARUS) |
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A British Airways passenger plane
prepares to land at the new Terminal 5 at Heathrow Airport in London
March 28, 2008. British Airways cancelled a fifth of its flights from
its new 4.31 billion pound ($8.6 billion) terminal at London's Heathrow
airport on Friday as chaos from its opening spilled into its second day.
REUTERS/Luke MacGregor (BRITAIN) |
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A child walks past election graffiti
in Harare March 28, 2008. Zimbabwe goes to the polls in parliamentary
and presidential elections on March 29. REUTERS/Philimon Bulawayo
(ZIMBABWE) |
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A screenshot from the race driving
videogame "Gran Turismo 5 Prologue". Sony is hoping games such as Gran
Turismo will help PlayStation 3 claw back market share lost to cheaper
consoles produced by rivals, including Nintendo's Wii and Microsoft's
Xbox. The company says more than 50 million copies of previous versions
of Gran Turismo have been sold worldwide. REUTERS/Sony Computer
Entertainment America/ Handout |
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Canada's Prime Minister Stephen
Harper pauses during an event at the Kuujjuaq Community Centre in Quebec
March 28, 2008. REUTERS/Tom Hanson/Pool (CANADA) |
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