Summary

Source CONUS Archive
Record ID 335378
Story Slug INSURANCE / SENATOR HOWARD METZENBAUM (D-OH) (1990)
Location WASHINGTON, DC
Format TVD
Date 12/10/1990
Archive Time 25:25
TRT 2:58
Video Description Imagery and sound from hearing
Script (SUGGESTED TRANSCRIPT OF AUDIO) Today's hearing is the first step in finding out what is really going on in the insurance industry are significant losses and assets like real estate, real estate, mortgages, and junk bonds, being papered over with accounting gimmicks, and illusory balance sheets to make insurance companies appear to be healthy, when in reality, they may be on the brink of insolvency is the public being misled into believing that their insurance is secure? If regulators are not imposing new and more effective accounting and reporting requirements on insurance companies, What guarantees do we have that their true value is known, and that they are not insolvent now are in jeopardy of becoming insolvent. 00:52 But in my tenure as as commissioner, I've been struck with how terribly inefficient the system is. And I've remarked to members of industry, how is it that you can stand dealing with 50 Different states 50 different sets of regulations, 50 different sets of personalities, and the confusion and complexity that that creates, plus the turnover that's involved in state Commissioner's offices. So there's a there's a great deal of it seems to be inefficiency in the process. 2:30 in their real estate and junk bond holdings. And I think that that, as I said in my statement that we must heed the lessons of the savings and loan crisis and not allow are not permitted accounting practices, which allow the deferral of loss or the deferral of recognition of negative capital positions. I think it's serious enough that we have to do something quickly.
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