re: #498 Noam Sayin’

If I understand you correctly, I have to disagree. That company in AIG that dealt with default credit swaps and such was set up for the purpose of those kinds of transactions. The insurance industry’s own regulative bodies - FINRA and the NAIC - forbid such endeavors.

Nonetheless, the insurance wing was brought down with them.

No, no, no. This practice was and IS unregulated. Think loophole or laissez faire.

Insurance companies do not consider credit default swaps to be insurance, and they are NOT regulated as insurance. In fact, they are not regulated by anybody.\

The Commodity Futures Modernization Act (CFMA) of 2000 (signed by President Clinton) included a loophole that deregulated derivatives trading between financial institutions (the OTC market, which is electronic).