Declarations
No Effective Legal Means
“We had no effective legal means to step in and prevent default (at AIG) … without helping this firm meet all its legal obligations.”
—U.S. Treasury Secretary Timothy Geithner told CNBC television that the bailout of insurer American International Group was not meant to help out bank counterparties and that he had no role in the decision not to disclose payments made to banks. In his first public comments since e-mails surfaced showing the New York Federal Reserve —when Geithner was at the helm —advised AIG not to disclose payments it made to banks after receiving a taxpayer bailout, he said the insurer was legally obligated to make the payments. The e-mails showed lawyers for the New York Fed advising AIG not to disclose payments that gave 100 cents on the dollar to banks holding AIG credit default swaps. (Reuters)
Fewer Helmets, More Fatalities
“Since the 1997 repeal of the mandatory helmet law in Texas substantially fewer motorcyclists choose to wear protective helmets and substantially more fatal injuries occur per motorcycles registered in the state.”
—A new study by Al Bavon, PhD, and Christina Standerfer, PhD, of the University of Arkansas Clinton School of Public Service, Little Rock, concludes that since the enactment in 1997 of a law making helmet use optional for motorcycle riders aged 21 or older in Texas, the number of motorcycle deaths has increased by 30 percent. The researchers analyzed data on motorcycle fatalities from 1994 to 2004. Motorcycle ridership grew as well, which contributed to the uptick in fatalities but other measures of motorcycle fatalities also increased. The number of deaths per 100,000 registered motorcycles rose from 89 in 1994 to 101 in 2004: a 15 percent increase. Motorcycle fatalities per vehicle mile traveled grew by 25 percent. The study was published in the Southern Medical Journal.
No Tolerance for Scam Artists
“It is egregious that hardworking Oklahomans, in their greatest time of need, are being preyed upon by scam artists who purport to offer legitimate insurance.”
—Oklahoma Insurance Commissioner Kim Holland. The commissioner fined a Tennessee company and two of its affiliates $25,000 each for violating a cease and desist order issued in November of last year, which alleged the American Trade Association (ATA) was illegally selling insurance products in Oklahoma. ATA and its various affiliated organizations are under investigation in at least 20 other states for selling insurance products without a license and for failing to pay claims. Holland said the decline of the national economy has contributed to an increase in insurance fraud during the past year.