Toomre Capital Markets LLC

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Finite Reinsurance

Non-traditional insurance products snare AIG and General Re???

Many participants in the capital markets seem to miss the significence of the combined Securities and Exchange Commission and New York State reviews of the non-traditional insurance products, an area that the article below notes was "until recently [an] obscure class of financial transactions that authorities believe some companies have used to manipulate their financial statements." This article seems to confirm some of the persistent rumors that AIG and General Re were very active participants in this area. Further, there may well be some truth to the rumors that have been quietly circulating about mis-deeds. Very clearly the last shoe has not yet dropped on indictments of either companies or individuals, including some very senior executives...

An astute reader might want to keep a keen eye out for more news and articles regarding the role of the off-shore insurers in non-traditional insurance products. The full story is far from completely told yet...