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Sunday, November 16, 2008

Now it's the insurance companies who have open hands

Where does it end? I wouldn't mind seeing some serious internal change as a precondition (but not a guarantee) for any federal assistance and that goes for Big Auto, Wall Street, insurance or anyone else. Institute changes including responsible spending, trimming of the excessive bonus culture and cutbacks across the board before any discussion even starts. If they're not willing to take on some pain upfront, it's not clear that they will willingly or easily or honestly abide by any real change let alone common decency.

Several insurers, including Hartford Financial Services Group and Genworth Financial Inc., made last-minute bids for billions of dollars in government money Friday.

Hartford Financial said that it agreed to buy a small savings and loan, helping the giant insurer apply for a government investment of up to $3.4 billion.
Shares of Hartford jumped 21% to close at $12.65 after the announcement.

The company said it applied to the Office of Thrift Supervision to become a savings and loan holding company and has applied to participate in the Treasury Department's Capital Purchase Program, or CPP.
It's all just too easy with the Paulson plan. Personally I'm much more concerned about the middle class getting a fair and equitable shake in the next economic rescue plan. Screw billions for bonus plans, luxury boondoggles, corporate jets, etc and let's see a plan that reaches out to the millions in the middle who are damned nervous right now about whether they will have a job in six months and insurance. As it stands today I can't say I have a lot of confidence that that's part of the next plan.

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