Run – Page 2 – [BonkNote]

AIG – Run AIG – Securities Lending – Run (p152) – iv. Would Bankruptcy Have Been as Bad as the Government Claims? 585 The events of the Great Depression are a useful comparison. There were two financial holidays in 1933: the first was a full banking holiday that shut down every bank in the United…

Run – Triggers Can’t Say Crisis in Confidence Disintermediation Reputational Risk Interest Rates Plenty of things could cause another run on insurance companies. A devastating earnings report or financial filing could set one off. So could comments from public officials. 2008 1114 – NYT – What Happens When Your Insurer Goes Under?, By Ron Lieber – [link]…

Liquidity – Policy Loans Loans [ACLI] – Re: Policy Loan Developments of 15 Life Insurance Companies The purpose of the meeting was to discuss concerns about the liquidity conditions and the possibilities of future adverse developments. The company people wanted to be sure that Mr. Volcker was fully aware of the potentials of the situation…

Runnable Run Disintermediation Surrender We define “runnables” as “pay-on-demand” transactions which embed defaultable promises made by private agents or state and local governments without explicit insurance from the federal government. 2015 0903 – FRB – The Runnables – [link] A life insurance policy is not indentured servitude. 2014 0310 – Letter – Sheila C. Bair…

Run Run – Index Run-off Firesale 2015 – FRB – Self-Fulfilling Runs: Evidence from the US Life Insurance Industry – 52p In May 1991, one month after seizing Executive Life, California regulators seized First Capital Life (FCLIC). Both insurers were Drexel clients with large junk bond holdings, and both had experienced ‘bank runs’. FCLIC’s run followed regulators’…

Run on the Bank A bank run is the sudden withdrawal of deposits of just one bank. A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as a cascading failure. In a systemic banking crisis, all or almost all of the banking capital in a country is wiped out; this can…

Run on the Life Insurance Company Run (p47) – Dennis ROSS (R-FL). There hasn’t been a run on life insurance, has there? Are people all of a sudden going to go and cash in their life insurance policies? Because if they are, then our serious consequences for economic structure are way out of line. 2015…

Disintermediation Run Disintermediation of traditional life insurance is most severe for policies sold as savings instruments. — George R. Dinney 1982 – SOA – Programs to Conserve Traditional Life Insurance Policies, Society of Actuaries – 18p When a policyholder feels deceived, the disintermediation potential is enhanced. — Allen D. Booth, a consultant in the Milwaukee office of…