Justice for Profit

Man Walking Steps

The automobile industry has a disreputable track record of rolling out flawed vehicles that threaten consumer safety.  The inevitable recalls burden consumers with worry and wasted time.  No manufacturer has a monopoly on faulty cars. Over the past several years, GM recalled 1.4 million cars due to a faulty ignition switch involving 13 deaths.  Ford […]

Citizens insurance subsidy should stay in Florida


What do the Principality of Monaco, the Grand Duchy of Luxembourg and the Principality of Liechtenstein have in common? Royal monarchies? Majestic wealth? One thing in common is that some of these countries’ residents own vacation homes here in Florida, and these homes are being subsidized by Citizens Property Insurance Corporation, a state-run homeowners insurance […]

The Hill’s Congress Blog: Protecting Banks is Not the Answer


Some banks are asking state legislators to pass resolutions calling on the U.S. Congress to eliminate the nonprofit status of credit unions, effectively imposing new taxes on the banks’ smallest of rivals.  Said differently, “too big to fail” banks – those first to get in line for federal help and bailouts – are coming to […]

Dodd-Frank vs Too Big to Fail


Most consumers knew that 2008’s great recession came from mortgages and other risky bank lending sliding into default.  The government chose to bail out big banks rather than let them to implode, triggering the much larger calamity of a Federal Deposit Insurance collapse.  To avoid publicly identifying bad banks, government forced all large banks to […]

Targeting Security Beyond Target

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The financial affairs of 40 million Target cardholders were placed at higher risk because of a cyber theft.  Target has released little information on what happened, and some reports suggest Target underperformed in handling the deluge of customer complaints about the security breach.  In response to the risks, Citi has limited the daily value of […]

Obamacare: Making the Dog Food

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Promotion of the Affordable Care Act is like sausage making described in Upton Sinclair’s “The Jungle.”   In both cases a questionable product is pieced together from noxious ingredients, as is dog food.  ACA enrollment is far below expectations.  The ACA audience faces uncertainty about services cost and quality, a botched rollout, and America’s youth know […]

Proposed Tax Changes Will Raise Consumer Insurance Prices


ACI submitted a letter to Senator Baucus regarding proposed tax changes that would lead to higher consumer prices for homeowner insurance in the U.S.  The bill includes a protectionist provision that raises taxes on some U.S. subsidies with international affiliations, thereby affecting taxes on global capital from reinsurers.  Because reinsurance represents the financial backstop for insurance companies, limiting […]