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Under new continuous insurance rules, car owners can check if their vehicle is correctly listed as insured on the Motor Insurance Database (MID) website. Yet a study shows there are 93 per cent of car owners never went on the site.

National TV advertising by the Motor Insurers’ Bureau and leaflets sent with tax disk renewal reminders promoting the new Continuous Insurance Enforcement (CIE) rules and the askMID checking website, seem to have done little to raise awareness of the free service.

According to an AA/Populus study of AA members, which prompted 16,850 responses, only 20 per cent of drivers were aware that the free AskMID service exists while just 7 per cent have ever used it.

But simple mistakes or delays in renewing cover can lead to cars being wrongly listed or missed off the database, opening drivers to the possibility of being stopped by police.

Simon Douglas, director of AA Insurance, says that the lack of awareness is disappointing given the importance of the new rules which make it a requirement that every car must be continuously insured, or registered as off the road with the DVLA using a Statutory Off Road Notification (SORN).

He points out that the police use data from the MID to operate their automatic number plate recognition technology which alerts officers if the equipment ‘spots’ an uninsured car.

 “Simple errors on insurance details, such as using an ‘O’ instead of a zero or two characters transposed – can result in a mismatch so it’s important to make sure the details are correct.

 “Similarly, if you delay renewing your cover to the last minute it could result in your car’s details ‘dropping off’ the database for a short time,” he says, pointing out that it can take two or three days, or even longer if there are queries to sort out, before insurance changes are uploaded to the MID.

 “Using the askMID website couldn’t be simpler.  Putting in your car’s registration number brings an instant response that either confirms that it is insured with its make and model, or a warning that it is not.

 “If you know you have cover but the car is recorded as being uninsured or the details are wrong you must take it up with your insurance company urgently,” he says.

 “It is also really important to renew your insurance or take out a new policy well before your cover expires and then make sure the details are correct.  If your car isn’t on the MID or it’s wrongly listed, you risk being stopped by police or getting an unpleasant letter through the post.”

Source : The AA / written by Ian Crowder (ian.crowder@theAA.com)

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Standard & Poor’s has revised Allianz Russia’s outlook from negative to stable. They have affirmed a ‘BBB-‘ counterparty credit and financial strength, and ‘ruAA+’ Russia national scale ratings on the company.

The outlook revision reflects a gradual recovery in Allianz Russia’s risk-based capital adequacy to a level commensurate with its stand-alone credit profile.

The ratings on Allianz Russia reflects S&P’s view of its strategic importance to its parent, Germany-based Allianz SE (AA/Stable/A-1+), as well as Allianz Russia’s good investment-portfolio quality and sound operating results.

S&P’s view is that these strengths are partly offset by high industry risks associated with operating in the Russian Federation (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2; Russia national scale ‘ruAAA’), and Allianz Russia’s limited competitive position in Russia’s insurance market.

The long-term counterparty credit and insurer financial strength ratings on Allianz Russia incorporate a three-notch uplift from S&P’s assessment of its stand-alone credit profile. This reflects their view of Allianz Russia’s continuing importance for Allianz SE’s growth strategies in Russia, as well as continued support from the broader Allianz group.

Allianz Russia is only a part of Allianz SE’s presence in Russia and specializes in the industrial and commercial insurance of large domestic companies and Russian subsidiaries of international companies (global clients of Allianz).

In July 2011, Allianz SE announced a consolidation of its operations in Russia, namely, through the integration of Allianz Russia and two other entities Allianz controls in Russia, Progress Garant (not rated) and ROSNO (not rated). Allianz expects the united company to begin operations from the start of the second quarter of 2012.

The stable outlook reflects S&P’s view that:

– Allianz Russia will likely remain strategically important to Allianz.

– Allianz Russia’s regulatory capital will be assessed on the basis of its expected integration with other Allianz subsidiaries.

– After the integration, Allianz Russia policyholders will have at least the same level of protection as they do now.

– Prior to the expected integration, Allianz Russia’s risk-based capital adequacy will be maintained at least at the current level.

– Allianz Russia will show sound operating results in 2011 supported by positive underwriting and investment results.

Negative rating actions if:

– Allianz Russia’s policyholders would be disadvantaged under the new corporate structure.

– The regulator deems that Allianz Russia’s regulatory capital is inadequate, contrary to S&P’s current expectations.

– If a significant and sustained deterioration of Allianz Russia’s earnings, competitive position, capitalization, or investment portfolio quality as a separate legal entity.

S&P expects to withdraw the ratings on Allianz Russia when the integration is complete, because it is  understood that the company will cease to exist as a separate legal entity.

S&P sees no indication of positive rating actions over the rating horizon.

Source : Standard & Poor’s

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Tropical Depression 13 has strengthened to Tropical Storm Lee. Lee is currently 200 miles southeast of Cameron, Louisiana, and 210 miles southwest of the mouth of the Mississippi River. Maximum sustained winds are 40 mph, up from 35 mph earlier today, and Lee’s tropical storm-force winds extend outward for 200 miles. The storm is moving very slowly north through the Gulf of Mexico, at 2 mph.

A tropical storm warning has been issued for Pascagoula, Mississippi, west to Sabine Pass, Texas, including the city of New Orleans (the warning for New Orleans encompasses Lake Pontchartrain). By late afternoon or evening today, the locations in this warning cone could begin to experience tropical storm conditions.

“The storm is a significant threat because it is slow-moving, and the potential exists for major flooding in New Orleans and other locations along the coast,” said Dr. Tim Doggett, principal scientist at AIR Worldwide. “Over the weekend, the storm could bring 10 to 15 inches of rain to southern areas of Louisiana, Mississippi and Alabama, and as much as 20 inches in New Orleans and other locations.”

Wind gusts near 60 mph are being reported on oil rigs north and east of the system’s center.

Dr. Doggett continued, “Lee is expected to slowly intensify as it tracks north; its maximum sustained winds could reach 65 mph by Sunday. Intensification of the system in the Gulf is in spite of wind shear associated with an area of upper level low pressure.  Given the warm sea surface temperatures—from which the storm can continue to draw strength—only the area of shear inhibits Lee from reaching hurricane strength at this time.  Fortunately, the shear is forecast to persist for the next 24 hours (or more), and the NHC’s forecast keeps the storm at tropical storm strength until landfall in Louisiana sometime over the weekend or on Monday morning.”

 “That said, confidence in the intensity (and track) is minimal at this time.  The sheer in the Gulf may still weaken, and if the storm remains over water for an extended period as this weakening happens (which some models are forecasting), Lee may achieve hurricane status before landfall. Thus, though the wind threat from the storm is low now, at least compared to major hurricanes, it could increase.”

In addition to uncertainty regarding intensity, the operational forecast models are not in agreement about where the meandering storm will track.  The NHC track indicates it could make landfall on the coast of southern Louisiana Monday morning, though it could linger near the Louisiana coast on Saturday evening, meaning torrential rains would pound the region for nearly two days before the storm actually came ashore. The storm may also make landfall earlier than predictions indicate if its forward speed increases. It could produce flooding rains from Texas to Georgia.

 “The current intensity and flooding potential from Tropical Storm Lee bear similarities to 2001’s Tropical Storm Allison, which—after dropping heavy rain on the upper Texas coast—returned to the Gulf, lingered there, and then made landfall in Louisiana, after which it moved across the southeast United States and Mid-Atlantic, including Pennsylvania,” commented Dr. Doggett. “Altogether, Allison caused insured losses of USD 2.5 billion (or USD 4.9 billion, in current dollars), despite being a tropical storm. Allison’s peak rainfall was 40 inches, and its worst impact from flooding was in Houston—west of where Lee is likely to track. In downtown Houston, Alison caused severe damage to hospitals and businesses.”

Source : AIR Worldwide

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The creation of Kames Capital marks the next step in the evolution of the £49bn asset management business as senior management look to build on the successes to date to create a leading specialist investment manager with a clear and distinctive personality and proposition. 

Kames Capital under the AEGON Asset Management brand has become renowned for its fixed income and UK equity capabilities, for which it has won a host of awards, as well as for its multi-asset and property propositions.

Headed by Andrew Fleming, Kames Capital will remain an integral part of the global AEGON Asset Management group of companies. It will continue to manage insured funds on behalf of its sister company AEGON UK, while also focusing on enhancing its growth in the wider investment management market.

Fleming says: “The launch of Kames Capital represents the start of an exciting new chapter for the business, and the people that work for it.  The new name provides a clear distinction between the role of this business and that of our sister companies. We intend to provide innovative investment products and solutions in parts of the market where we believe we have a distinctive and sustainable advantage.”

“Our new name is both a sign of the tremendous progress we have made in recent years and a clear indication of our intent to maintain our reputation for delivering strong investment performance and excellence in client servicing.”

AEGON Asset Management chief executive Sarah Russell says: “The move to rebrand the business as Kames Capital in the UK follows a strategic review of the wider asset management group earlier this year, and is an important step in that business becoming a major force in investment management.”

Source : AEGON

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Reinsurers Munich Re and Hannover Re believe it is still too early to estimate damage claims from Hurricane Irene.

“There is flooding and power outages. It is too early to estimate the damage,” said a Munich Re spokeswoman. Hannover Re also said it was too early for loss estimates.

Hurricane Irene was downgraded to a tropical storm on Sunday but still affected large areas of the U.S. East Coast, including New York City and New England.

Early estimates from risk modelling agencies suggest damage from the storm was less severe than initially feared. Modelling agency AIR Worldwide on Sunday had pencilled in insured losses of between $2 billion and $8 billion.

Insurance industry observers saw a loss of about $3 billion for the U.S. mainland, and a further $500 million for North Carolina alone.

Munich Re and Hannover Re shares rose more than 2 per cent in early trading on Monday.

Source : Reuters 

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Insured damages in the Caribbean and Bahamas from Hurricane Irene could hit $1.1 billion, a US insurance estimator said Friday.   

AIR Worldwide put likely insured damages in a range of $500 million to $1.1 billion, with more than 60 per cent of that in the Bahamas, pummeled by the deadly storm on Wednesday and Thursday.

“This estimate includes wind and precipitation-induced flood damage to insured onshore residential, commercial and industrial properties (and their contents), automobiles, and business interruption losses in the Bahamas, Puerto Rico, Dominican Republic, Turks and Caicos, and other Caribbean territories,” AIR said in a statement.

It said Irene, with winds hitting 130 miles per hour (210 kilometers per hour), had left significant damage behind in the northwestern Bahamas islands of Abaco, Cat and Eleuthera before heading on a course for the US coastline.

“There are reports of downed trees and significant roof damage throughout the region, but with severe disruptions to telecommunications and power networks, damage reports have been sparse thus far,” it said.    The island chain’s major tourist resorts were spared, though.    “Fortunately, Irene tracked east of densely populated New Providence Island and Grand Bahama Island, subjecting them to only tropical storm force winds,” said AIR scientist Scott Stransky.

Earlier Irene pushed through the eastern Caribbean, leaving five people dead in Haiti, Puerto Rico and Dominican Republic.

Washington, Aug 26, 2011 (AFP)

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Banks in the US are asked by regulators to take more deposits from heavy investors even if this may be unprofitable. Lenders are seeking in return some relief on insurance premiums and leverage ratios.

U.S. banks are seeking regulatory relief from a flood of deposits as investors seek safe places for their money away from Europe’s debt crisis and falling stock prices.

Regulators have asked banks to take the deposits anyway, three people said, the report said.

The regulators want lenders to take the deposits because it improves the stability of the financial system, according to one of the people, who said U.S. banks are viewed as places of strength.

More deposits mean banks have to pay more fees to the Federal Deposit Insurance Corp, which insures customer deposits up to $250,000. The fees are assessed on a quarterly basis and calculated using the banks’ daily average deposit and asset levels.

Lenders have held discussions with officials at the Fed, FDIC, Office of the Comptroller of the Currency and the Treasury Department, according to four of the people, the report said.

Source : Reuters

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Sainsbury’s new research shows that 6.2 million (13%) people in Britain have fallen foul of “cowboy” traders in the past five years. The research also shows that GBP 3.7 million have been paid out to rectify botched jobs during that time.

The research suggests that plumbers have caused distress to most, with 1.4m saying they have fallen foul of their poor quality work since 2006.

In light of these alarming findings, Sainsbury’s Home Insurance is urging homeowners to only use reputable, skilled, trades people to avoid taking any risks. Sacrificing quality in favour of saving money, could prove a very costly mistake, as you could find yourself footing a bill much higher than expected as you look to rectify any mistakes or shortcuts. In extreme cases, if a homeowner is proven not to have taken reasonable care of their property, they could also risk invalidating their home insurance.

Ben Tyte, Head of Sainsbury’s Home Insurance comments: “We’re concerned that so many homeowners have to rectify poor workmanship carried out by people they’ve employed in good faith to work in their homes. It’s completely unacceptable that the remedial costs are exceeding £700 million. Of course the burden isn’t just financial; there can be a great deal of personal stress attached to these difficult situations including the clean up and often confrontation.

“In these challenging economic times, it’s understandable that people want to cut back on costs but where work to the home is concerned it’s just not worth the risk. It’s simply false economy, especially if you’ve invalidated your home insurance by not taking due care. It’s imperative you hire a quality tradesman, and make sure that the work is done properly.”

Of those that used tradesmen in the past five years, only a third (36%) say they asked for a number of quotes and a mere 31% asked for a formal written quote for the work. Worryingly just 5% checked if they were accredited by TrustMark, the Government endorsed standards agency, despite this being an easy web-based check via TrustMark’s online database. Men are more thorough in their checking with 15% saying they asked for references opposed to just 9% of women.

Those that have employed a “cowboy” trader in the last five years paid an average of £2,077 for the work they carried out. On top of this amount they had to pay nearly £600 to either repair the damage or complete the unfinished job. This equates to nearly £3.7bn over the last five years. Over 150,000 people are estimated to have paid over £5000 to rectify a botched job.

Ben comments: “There are some simple steps that you can take to avoid calamity, spend some time researching local tradesmen – perhaps ask friends and family for recommendations or ask companies you’re thinking of hiring for references. You should always contact at least three and ask for a written quote, this will give you confidence that you are paying the right amount for the job you need done. Always check for relevant qualifications and accreditations, like TrustMark.”

Ben adds: “We appreciate that there are emergencies where we need access to a good tradesman at short notice, and to help our customers, we provide a 24-hour Home Emergency advice service as part of their cover. This is a valuable service that we offer, where we arrange to deal with the emergency by choosing a qualified person to deal with repairs that require immediate action, for example to make your home safe and secure, or to avoid more damage to your home. We would urge all homeowners to check if their provider offers a service like this, as it could mean the difference between a good and bad – not to mention costly – experience.”

In London one in five has been the victim of a rogue tradesman in the past five years. Those in the East Midlands and North East have suffered least from rogue tradesmen (8%).

Location Percentage of people that have fallen foul of a ‘cowboy’ or ‘rogue tradesman’ in the past five years
London 20%
Scotland 17%
Yorkshire & Humberside 16%
Wales 15%
South West 14%
Eastern 13%
North West 12%
South East 10%
West Midlands 9%
North East 8%
East Midlands 8%

Source : Sainsbury’s

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RDT, market leading supplier of packaged insurance systems and rating engine software, is delighted to report a 36 per cent year-on-year growth in turnover as it celebrates two decades of trading.  

The growth reflects increasing demand for Landscape, RDT’s functionally rich, user-friendly end-to-end packaged insurance administration solution. While other software providers have announced cuts in staff and the number of platforms they will support, RDT has increased its team by 30 per cent and has further expansion plans. The huge wealth of insurance market experience held by the RDT team is dedicated to supporting one platform common to all its customers – Landscape.

The last twelve months have seen RDT add a number of new clients to its customer base, including Select from Direct Line. Existing customers strengthened their partnerships with the company by implementing Landscape across a number of business lines, specifically incorporating commercial. In the same period RDT became international, with South Australian insurer and motoring organization RAA choosing Landscape to support its insurance business.  And, maintaining its focus on innovation, RDT launched the first rating engine in the Cloud.

July’s Celent Report: Policy Administration Systems for General Insurers in Europe, gave RDT the highest possible rating for its “on time” and “on budget” delivery, with customers describing the company’s approach as “down to earth” and “no-nonsense”.  The report also highlighted Landscape’s robust nature and scalability.

Mark Bates, CEO, said: “For insurers to be competitive IT must be simplified and business processes streamlined, freeing up staff to concentrate on delivering exceptional service.

 “Multiple platforms are a thing of the past; our customers benefit from a common platform which receives regular upgrades.  Our modern, user-friendly interface means staff are effective in days, not weeks, product launch times are collapsed and business process changes are effective in minutes rather than months.  We have invested about 40 per cent of our product revenue in R&D in the last two years and we are committed to leading the way with intelligent innovation.”

For more information please visit RDT

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Merlin Professional Claims Service announces the successful completion its first class of students from the ‘Merlin Academy’ accredited Chartered Management Institute (CMI) Level 2 Certificate in Team Leading.

The group of aspiring Team Leaders began the one year course in 2010 following the accreditation of Merlin’s award winning ‘Merlin Training Academy’- Merlin was the first Loss Adjusting business to be qualified to teach this course.

The course saw delegates integrate across Merlin’s network of regional offices, providing experience of each element of the business. The successful group will now go on to study for a Diploma in Team Leading to further enhance and develop their skills. This latest success further cements Merlin’s place as one of the top training providers in the country.

Val Barlow, Head of Employee Development at Merlin comments: “Merlin is dedicated to investing in its staff and acknowledges the benefits that training and qualifications produce. The CMI course has been highly successful and the benefits are clearly demonstrated both on a personal level for the candidates, and through the business as a whole. Throughout the year, our managers have advanced significantly and are already putting what they learnt on the course into practice within their day-to-day roles.”

Jodie Finch, Merlin FNOL Team Senior and course graduate, commented “The course has helped further define my knowledge of how to best manage and motivate every member of my team. The modules are applicable to real life situations and many have already become part of my daily routine.”

Source : Merlin

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French bank BNP Paribas upped its gold price forecasts Wednesday, saying it expects gold to average at $2,080 a troy ounce in 2012, up from $1,600/oz previously forecast.

The bank also increased its average price forecast for 2011 to $1,635/oz from $1,510/oz, while predicting the metal average at $2,200/oz in 2013.

However, the adjustments came with a word of caution, as BNP Paribas warned that a short-term correction in gold is “likely,” given the extent of the metal’s rally since the beginning of August.

At its latest record high Tuesday, the European spot price of gold traded at $1,912.29/oz, up 17% on the start of the month. Spot gold most recently traded at around $1,850/oz, having softened considerably in the last 24 hours amid widespread profit-taking.

BNP Paribas is the latest in a long line of banks and brokers to upgrade their outlook for the precious metal in recent weeks as the deteriorating macroeconomic backdrop has sent investors into the precious metal as a safer bet than equities and currencies.

Swiss investment bank UBS AG hiked its one-month gold by 13% to $1,950/oz Tuesday, saying it expects gold to exceed $2,000 a troy ounce before year-end. Earlier in the month, J.P. Morgan forecast the metal reaching at least $2,500/oz before the end of 2011.

While BNP Paribas sees gold peaking in 2013 with the expected start of monetary tightening in the U.S., it does not see a sharp decline thereafter, due to a number of enduring gold-supportive factors. These factors include high-debt levels in developed economies and increased uncertainty within the international monetary system, the bank said.

London, August 24, 2011 (Dow Jones)

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Central banks picked up nearly half of Sweden’s EUR1 billion bond issued Tuesday, in a deal that was the cheapest-ever syndicated transaction completed in euros, the Swedish National Debt office said Wednesday.

The two-year bond priced at 55 basis points below midswaps with a coupon of 0.875%. Central banks bought 49% of the bonds, while banks, corporates and fund managers bought about 14% each.

Sweden is triple-A rated by all the three major ratings agencies and regarded as a safe sovereign credit, making the bond attractive for a broad investor base during the debt crisis.

Other investors included pension and insurance companies. Over 30% of the bonds were sold to Nordic investors, while the remainder went to Eastern Europe, continental Europe, Asia and the Middle East.

“Swedish public finances are among the strongest in Europe and the credit risk is priced among the lowest in the world,” lead managers involved in the deal said. “The level achieved by Sweden is extremely tight, especially in the context of a syndicated transaction and highlights the exceptional standing of Sweden among the international investor community.”

The bond is part of the refinancing of the on-lending foreign currency to the Riksbank.

Danske Bank A/S, Goldman Sachs International and Nordea Markets were lead managers for the transaction.

London, August 24, 2011 (Dow Jones)

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Scottish Life, the pensions specialist arm of the Royal London Group, has announced that from 14 November 2011, the underlying investment within the Scottish Life UK Mid Cap Specialist Pension Fund will change from Schroder UK Mid 250 to Franklin UK Mid Cap Fund.

In addition, from the same date, the underlying investment within the Scottish Life US Core Plus Pension Fund will change from Investec American to Fidelity American.  These changes reflect Scottish Life’s commitment to strong and effective investment governance.

The Scottish Life UK Mid Cap Specialist and US Core Plus Pension Funds are part of a group of externally managed equity funds categorised by sector and by risk relative to a benchmark.

Lorna Blyth, Investment Marketing Manager at Scottish Life, commented:

“We take a proactive role in the governance of our investment fund range, with regular reviews of the investment objectives, performance and benchmarks, and we make changes when necessary.

“We have taken the decision to replace the Schroder UK Mid 250 Fund following a sustained period of underperformance and concern that the size of the underlying fund had increased to such an extent that it was likely to have a negative impact on performance relative to its market sector.  The Investec American Fund has also had a sustained period of underperformance and in addition has become more volatile relative to its benchmark.  We therefore feel that replacing the fund is the most appropriate action to ensure the risk profile is maintained.  Both the Franklin UK Mid Cap Fund and the Fidelity American Fund have long track records of strong performance and we believe that in each case the manager’s style and process are better suited to delivering consistent performance in varying market conditions.

“We’ve designed the process of replacing an underlying fund to be a seamless transition.  And we’re communicating the changes to advisers and policyholders well in advance so they can be confident that we continually monitor the fund range and make adjustments when we feel it is necessary.”

Source : Scottish Life Press Release

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A strong earthquake struck the U.S. East Coast and was felt as far away as Canada on Tuesday, shaking buildings in many cities, delaying flights and trains and sending thousands of frightened workers into the streets.

There were no reports of major damage or injuries from the 5.9 magnitude quake, which the U.S. Geological Survey said was cantered in Mineral, Virginia, at a very shallow depth of 1 km.

The Pentagon and the U.S. Capitol were briefly evacuated in Washington, and thousands of panicked office workers scurried into the streets up and down the East Coast as the lunchtime quake sent items crashing to the floor from store and office shelves.

“We were rocking,” said Larry Beach, who works at the U.S. Agency for International Development in downtown Washington, 133 km from the quake’s epicentre. “It was definitely significant.”

Earthquakes of magnitude 5.5 to 6 can cause damage to buildings and other structures, especially if shallow. The U.S. East Coast does not normally feel quakes of this strength.

The shallower a quake is, the more intense it is felt on the surface, and the potential for damage is greater.

Amtrak reduced speed between Washington and Baltimore, track crews inspected East Coast stations and rails for damage and warned passengers to expect delays.

Two nuclear reactors at a power plant in Virginia went off line, while traffic lights were knocked out throughout Washington.

Three pinnacles in the central tower of the Washington National Cathedral, the highest building in the city, broke off in the quake, a spokesman said.

Chandeliers swayed in the U.S. Capitol and the floor of the U.S. Senate shook before staff headed for the doors. The U.S. Congress is in recess.

“I thought at first somebody was shaking my chair and then I thought maybe it was a bomb,” said Senate aide Wendy Oscarson-Kirchner.

Phone service was disrupted throughout the region as network congestion prevented Cellphone users from making calls. A Verizon Wireless spokesman said there were no reports of damage to its network but congestion disrupted service for about 20 minutes after the quake.

New York panic

In New York, the tremors prompted evacuations of courthouses, City Hall and halted work at the World Trade Centre construction site.

Control towers at John F. Kennedy International Airport in New York City and Newark Liberty Airport in New Jersey were also evacuated, and flights were grounded briefly in Washington, Philadelphia and New York while authorities inspected control towers and runways.

Fire department and police officials in Dutchess County, north of New York City, reported structural damage to some buildings.

“We’re getting a lot of calls on buildings shaking but there’s no report of any structural damage at this time. Just panicked people calling about buildings shaking,” a spokesman for the New York City Fire Department said.

Buildings in Boston were evacuated, while the quake was felt as far away as Toronto.

Some people who experienced the swaying at their offices in Boston said they felt their stomachs turn.

“I thought I was dizzy and I needed to drink more water,” said Heather Kennaway, a manager at Sportello, a local restaurant, who was unaware of the earthquake.

The earthquake was felt in Martha’s Vineyard, where President Barack Obama was playing golf on his summer vacation at the time. It was unclear if Obama felt the tremor.

The quake was the largest in Virginia since 1897.

Vacationers at the Hamptons, the upscale resort on eastern Long Island, felt the earth shake. Many grabbed their cell phones to make calls, while several began asking aloud whether a tsunami — a huge wave created by an underwater quake — was headed their way.

Source : Reuters

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The number of US banks listed as “problems” by regulators declined at the end of June for the first time in five years, the Federal Deposit Insurance Corporation said Tuesday.   

After having shut 394 big and small banks during the period of the financial crisis, the FDIC said its list of troubled financial institutions was finally slimming, to 865 at the end of the second quarter from 888 after the first quarter.    “This is the first time since the third quarter of 2006 that the number of  ‘problem’ banks fell,” said the FDIC, which guarantees bank deposits and monitors bank health.

The FDIC began forcing insolvent banks and savings institutions to shut, and transferring their assets to stronger institutions, at a fast pace beginning in 2007 as the collapse of the housing market shook the industry and sent the economy into recession.

So far this year 68 banks, most of them small community institutions, have been closed down.

The FDIC also said that aggregate profits at banks and savings institutions it insures were up at the end of June to $28.8 billion from $20.9 billion a year earlier, and that only 15.2 per cent of the banks reported losses.

It also said that asset quality had improved for the fifth straight quarter, with write-offs of uncollectable loans totalling $28.8 billion in the quarter, 42.1 per cent lower than a year earlier.

Washington, Aug 23, 2011 (AFP)

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Traces of toxic chemicals harmful to the environment and to human health have been detected in products made by 14 top clothing manufacturers, Greenpeace said Tuesday.   

Samples of clothing from top brands including Adidas, Uniqlo, Calvin Klein, H&M, Abercrombie & Fitch, Lacoste, Converse and Ralph Lauren were found to be tainted with the chemicals, known as nonylphenol ethoxylates, the watchdog said at the launch of its report “Dirty Laundry 2”.

Greenpeace campaigner Li Yifang said that nonylphenol ethoxylates (NPEs), commonly used as detergents in industries including the production of natural and synthetic textiles, were detected in two-thirds of the samples the group tested.

“NPEs break down to form nonylphenol, which has toxic, persistent and hormone-disrupting properties,” Li told journalists in Beijing.

“It mimics female hormones, alters sexual development and affects reproductive systems.”

Greenpeace said it purchased 78 branded clothing samples — mostly made in China, Vietnam, Malaysia and the Philippines — from 18 countries around the world and subjected them to scientific analysis.

“Even at low levels, it represents a big threat to the environment and human health,” Li said.    “This is not just a problem for the developing countries where textiles are made.

“Since residual levels of NPEs are released when clothes are washed, they are in effect creeping into countries where their use is banned.”

The latest investigation came after Greenpeace last month published “Dirty Laundry”, in which it accused the manufacturers of well-known textile brands of polluting major rivers in China with chemical waste.

Following the publication, brands including Puma and Nike pledged to eliminate all toxic chemicals from their manufacturing processes by 2020, Li said.

Beijing, Aug 23, 2011 (AFP)

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Societe Generale SA, France’s second-largest bank, signed a liquidity contract on its shares with Rothschild & Cie, which will allow the financial company to trade the bank’s stock to avoid excessive swings in prices, according to a note posted on the bank’s website.

“They’ll buy and sell Societe Generale shares to stabilize the price and quell volatility,” a spokeswoman said.

Societe Generale, whose shares were battered in the past month, said the liquidity contract is worth EUR170 million.

Paris, 23 August, 2011 (Dow Jones)

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Greek banks have been asked to provide details of their planned participation in a government debt swap program by Sept. 9, financial daily Imerisia reports Tuesday.

The Greek daily added that the government expects to complete the overall exchange by mid-October.

Specifically, the newspaper says that within the next three weeks, Greece’s lenders must inform the government of the amount of bonds they hold that are eligible for the program, and which of several swap options they will select.

The request was detailed in a letter sent by Greece’s debt management agency, which is leading talks on the debt exchange, that was sent to the banks Monday.
In July, European Union leaders agreed to a new EUR109 billion assistance program for Greece to cover its financing needs for the next several years. Central to the Greek plan is a distressed-debt exchange whereby the country’s private-sector creditors agree to accept new bonds worth less than their original holdings.

The plan offers four options for private lenders to swap some EUR135 billion in Greek government bonds maturing between now and 2020 into new 15- and 30-year debt. According to analyst estimates, Greek banks hold about EUR25 billion worth of Greek government bonds that mature by 2020.

Depending on the level of private sector participation, Greek officials say they may extend the program to include debt maturing as late as 2024. Officials say that so far, creditors representing only about 50% of the bonds maturing in the next nine years have declared their participation.

According to the article, Greek banks are hoping to include any write-offs from the debt exchange in their second quarter 2011 results. Those are due to be announced next week just ahead of an Aug. 31 deadline for listed companies to report their second quarter earnings.

However, the article says that Greece’s capital markets regulator may push back that deadline for the banks, so as to allow final details of the swap deal to be worked out first.

Athens, August 23, 2011 (Dow Jones)

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Australia & New Zealand Bank (China) has become the second foreign bank to trade gold futures on the Shanghai Futures Exchange, potentially heralding increased foreign participation in China’s gold-trading market.

ANZ China said in a statement Tuesday that it gained access to the gold futures trading platform at the SHFE upon becoming a member. Its admittance to the bourse indicates that China is opening up the gold-derivatives-trading sector, a trend that analysts said could spur further trading interest as more foreign banks get involved.

HSBC China was the first foreign bank to become to be allowed to trade gold futures as a member of the SHFE, in late July.

Although foreign bank memberships are so far limited to gold-futures trading, the SHFE may be able to carve out a bigger role in China’s gold market while gaining increased pricing power on global markets if it opens up its membership to more foreign banks, analysts said. Currently, spot gold trading is considerably more active than futures trading.

“Allowing foreign banks to trade on the SHFE may increase activity in the market and increase the interplay between the Chinese market and international markets,” said Shanghai Cifco Futures senior analyst Wang Zhouyi.

ANZ China, became a member of the Shanghai Gold Exchange in 2008, where it was the first foreign bank in China to launch Chinese-yuan-denominated gold-forward products, in 2010, and the first foreign lender to enter China’s interbank gold leasing market, it said in a statement.

ANZ China was established in 2010 as Australia & New Zealand Banking Group Ltd.’s (ANZ.NZ) locally incorporated subsidiary in China.

Shanghai, 23 August, 2011 (Dow Jones)

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Pension transfer prices remain stable despite volatility in wider financial markets following the sovereign debt crisis, said benefits consultant Mercer, as two pension insurance deals closed on Monday totaling 1.73 billion pounds.

The U.S. credit rating downgrade from Standard & Poor’s and the ongoing euro zone sovereign debt crisis has had little impact on bond yields, which drive the price costs of pension insurance buyouts and buy-ins – known as bulk annuities.

Unlike in 2008, there is no perceived extra risk in the corporate bond sector,” said Mercer in a statement on Monday. “At that time, this had made insurers nervous resulting in rising bulk annuity prices.”

Buyouts are used by companies to pass on pension assets and liabilities, which as retired workers live longer can in extreme cases threaten an employer with insolvency. Buy-ins are generally used to insure a scheme’s liabilities but leave most of the assets within the scheme.

British specialist insurer Pensions Corporation said on Monday it has completed an insurance buyout deal for the Nova Chemicals UK Pension Plan.

The energy company has transferred 30 million pounds of liabilities and 155 members in a pension buyout deal, Pension Corp said in a statement.

The insurer said it was involved in auction processes for buyouts and buy-ins totalling around 9.5 billion pounds – having already written 500 million pounds of new business in 2011.

Meanwhile, Credit Suisse has taken on 1.7 billion pounds of risk posed by people living longer than expected from ITV’s UK pension scheme, in the third biggest risk transfer involving a UK pension scheme to date, according to Towers Watson, who advised ITV on the deal.

The longevity swap contract will cover the British scheme liabilities related to about 12,000 retired members, which will see the British terrestrial TV broadcaster make fixed monthly payments to Credit Suisse, and in return the Swiss bank will make payments to the scheme that broadly match the value of the benefits being paid out.

“Typically, pension schemes expect today’s pensioner’s to live two or three years longer than they budgeted for a decade ago,” said Paul Kitson, a senior consultant at Towers Watson.

Shares in ITV gained 2.5 per cent, outperforming the FTSE 100 FTSE index following the longevity swap.

“We see this as a positive in that it limits ITV’s risk on its sizeable pension liabilities,” JPMorgan analysts said in a note.

Only a handful of longevity swaps have been formatted to work for a pension scheme in Britain — around 8 billion pounds in the past five years, according to Pension Insurance Corporation.

The biggest so far involved German car maker BMW last December offloading 3 billion pounds of risk from its British pension scheme to Deutsche Bank’s insurance subsidiary Abbey Life.

Source : Reuters  

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