Wednesday, September 17, 2008

AIG Asia Update

Hong Kong is freezing AIG assets in-country. I'm sure more Asian authorities will follow suit in an attempt to restore confidence, but this might backfire if AIA assets are in concentrated pools. This could signal a tug-of-war between Asian authorities over AIA capitol.

HK moves to avert AIA asset shift

Thursday, September 18, 2008

Hong Kong's Insurance Authority has exercised its power to ring-fence the assets of AIG's insurance subsidiaries, Financial Secretary John Tsang Chun- wah said yesterday.

The companies cannot now transfer assets or funds out of Hong Kong without prior approval from the authority.

"It's a matter of public confidence," Commissioner of Insurance Clement Cheung Wan-ching said. "We will protect policyholders' interests, in order to keep the market stable."

Tsang said the authority will "spare no effort" in monitoring the two AIG subsidiaries that offered life insurance.

"The authority will ... impose new regulatory actions if justified by prevailing market circumstances," he said.

Cheung said he believes the moves will not affect the daily operation of AIG's businesses in Hong Kong.

"Any transfer relating to normal business activities would not be barred," a government source said.

Cheung said AIG units in Hong Kong are "healthy" and said he does not see any problems in their operations.
BTW, sorry about straying from the usual blog topics lately, but there are a lot of stories falling through the cracks that might be considered interesting around here. Any abuse you wish to unleash can be left in the comments. :)

1 comment :

Anonymous said...

Slightly off topic but seeing the market in turmoil and then reading local real estate adds-something is not aligned--Check this home ad out in Roseville-
Status: Active Short Sale - The owner must sell quickly or lose it all. This is a once-in-a-lifetime opportunity to buy a nice 3, 100 square feet with 5 bedrooms, 3 baths and 2 car garage in a very desirable area. Hurry, as the first caller will be the new owner at very affordable price.