Domestic terrorists don’t wear pinstripes

Is it just me that is absolutely gobsmacked by this!?

Further evidence, of the lack of consistency and glaring inequalities. OK, we know that Regulators and Legislators see fit to ignore the scale of the crimes perpetrated by these banksters BUT for how much longer can any right-minded citizen stand idly by?

More (costly) regulation won’t change this culture but, CONSTRUCTIVE TRANSPARENCY can. And, in the process, reduce the risks associated with such behaviours.

Political and Financial leaders know that they are playing a very high stakes game and that there is a growing threat that ALL that they hold dear will, as a result of both their actions and inaction, come under threat. Would this go some way to explain the rate at which civil liberties are being stripped away across the Western world? I sincerely hope that such questions or suggestions don’t qualify me as a “domestic terrorist” because, as a mere citizen, anything could happen…

JPMorgan Chase has been sanctioned by US regulators for failures in its risk management operations after it lost more than $6.2 billion on a single credit derivatives trade. The sanctions follow the disclosure of significant losses in a large synthetic credit portfolio that was managed by the CIO. The botched bet – made by UK big fish Bruno Iksil – had managed to wipe out $51 billion in shareholder value before alarm bells started to ring at the bank’s head office in New York. Among other things, the Fed identified deficiencies in risk management oversight, modelling assumptions, audit and finance reporting and escalation to senior management. The OCC further found that the bank’s BSA (bank Secrecy Act) compliance programme had “critical deficiencies” with respect to suspicious activity reporting, monitoring transactions, conducting customer due diligence and risk assessment, and implementing adequate systems of internal controls and independent testing. Despite the criticism, JPMorgan Chase escaped with nothing more than a rap on the knuckles. No fines were levied by the watchdogs and the bank didn’t admit or deny wrongdoing in consenting to the regulatory orders


Transparency the price insurance can’t afford:: MP’s have claims management companies in their sights

As I have been saying for several years, when it comes to TRANSPARENCY for the insurance industry, “resistance is futile”!!!

Whether the current concern is broker commission disclosure, OFT investigations in pricing and activities of the motor insurance market, the collapse of Merlin Loss Adjusters, appalling customer service or Loss Assessors being sent to prison THE MESSAGE IS CERTAINLY TRANSPARENT…but, for how much longer can the industry remain in denial?

The decision of government business managers to schedule a three hour backbench debate next Thursday (8 November) on the Regulation of Claims Management Companies shows the level of concern across all parties at the activities of these firms, especially in relation to personal injury claims and payment protection insurance (PPI) compensation.

via MPs have claims management companies in their sights- 01 Nov 2012 – Post Online Blog.

FSA:: Lord Turner’s "paradise" lost

I’ve never met the man but I like the cut of his jib. Perhaps it is the novelty of someone in high (financial) office admitting what his peers feel they cannot…even though, with brief explanation, a child could differentiate good guys from bad!

Lord Adair Turner, the outgoing chairman of the Financial Services Authority and a candidate for Bank of England governor, said last night the FSA had spent its first eight years in a “fool’s paradise” of delusion about financial risk.

via FSA was in fool’s paradise, admits Turner | Herald Scotland.


Blanc warns on commission disclosure:: Insurance Age

I would like to be a bit more specific than Mr Blanc. THE ‘danger gap’ is the difference between what brokers are PAID and what their clients’ perceive they are worth!

That is, what value does a client place upon the quality of advice and service they receive from their broker?

It should tell the commercial/corporate insurance-buying public all that they need to know, that the industry has been trying to resist the “threat” of commission disclosure for a long time…

…surely TRANSPARENCY is only a threat if you have something to hide!?

For Mr Blanc the “danger gap” was the space between what brokers earned and what clients perceive that they earned.

via Blanc warns on commission disclosure Insurance Age.

Biba did disappoint (rather than surprise) when Eric Galbraith, at their conference in May this year, vowed to resist EU regulatory calls for “hard disclosure”. I was not impressed and voiced my opinion at the time!

For an industry involved in risk, we have become remarkably proficient at lecturing others on the subject whilst failing to take our own advice! Ignoring or avoiding inconvenient truths about our own shortcomings is standard practice.

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Moody’s warns OFT motor referral will "hurt profitability"


Insurance (Photo credit: Christopher S. Penn)

Somehow I suspect that, if this is the first time industry leaders take notice such a "warning", any criticism about arrogance or ignorance in the sector would be immediately vindicated!

"At a minimum it [the investigation] will create uncertainty for the industry and more significantly could result in lower motor premium rates.

"A reduction in revenue from lower premium would hurt profitability, particularly for those UK general insurers with the greatest market share in private motor insurance."

via Moody’s warns oft motor referral will "hurt profitability" Insurance Age.

How much does the industry actually care about its “policyholders”? Well, a big clue for me is that they are still, too often, referred to in that manner. Even the term "customers" really doesn’t do the relationship justice.

After all, as a policyholder, I haven’t just walked out of your shop having spent £1 on a newspaper or some sweets.

I have purchased a promise of protection against a future event that may result in financial loss or injury…I am a STAKEHOLDER in your business and NOT just some "sap" who believed the promises made in an over-priced advertising campaign – that manages to irritate and insult in equal measure!

Perhaps if you thought of me and treated me like your marketing people say you do, I might find it in my heart to look beyond the one-dimensional price message that pollutes my daily existence and ignore the constant reminders that shopping around is good – but being disloyal isn’t!?

Still, it is reassuring to know that, whether I’m old, young, male, female good or bad risk you aren’t singling me out for special treatment…you’ll mistreat and cheat us all across the board.

At least, in (allegedly) cheating re pricing you’re not discriminating against me. Well, until OFT tells me otherwise!

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