NY Insurance Superintendent Dinallo To Resign

Discussion in 'Economics' started by Moc Yeah, May 28, 2009.

  1. Kind of an interesting time for him to step down and become a professor.
    With him and Liddy from AIG wanting out... is it possible that the Insurance Industry could be a lot worse than people think?

    Dinallo was doing the CNBC circuit when the crisis struck late last year. He was being labeled by the "green shoot/rosey glow" crew as a future star.
    It just doesn't make sense to resign at this time.


    New York Governor David Paterson said Eric Dinallo would resign as New York state insurance superintendent July 3, after serving in that role for just over two years.

    Dinallo will leave the post to take a teaching position at New York University's Stern School of Business. There has been speculation Dinallo may run for attorney general of New York if current Attorney General Andrew Cuomo sought another post.

    Paterson on Thursday said Dinallo played "an integral part in the reform of workers' compensation system and facilitated more than $15 billion in new capital for the bond insurance industry."

    Dinallo also testified before Congress for regulation of the credit default swaps that were integral to the financial crisis. Prior to his role as state insurance superintendent, Dinallo served as managing director of the Global Head of Regulatory Affairs for Morgan Stanley (MS). He also served in then-Attorney General Eliot Spitzer's office from 1999 to 2003.

    In the first part of his stint as insurance superintendent, Dinallo played a key role in discussions aimed at stabilizing bond insurers such as MBIA Inc. (MBI) and Ambac Financial Group (ABK), which were stung by their exposure to mortgage-related securities.

    Dinallo also worked closely with the Treasury Department, the Federal Reserve Bank of New York and others in the rescue of insurance giant American International Group Inc. (AIG). Republicans have questioned the timing of the funds, as the state Democratic Party received a $100,000 donation from AIG days before officials initiated a bailout.
  2. Daal


    About frikking time. Stabilized?He made them more insolvent by separating them in two entities, the banks will face bigger losses now because the insurers have less capital against the garbage CDOs. He protected muni policy holders to the expense of cdos and structured finance policyholders, there is nothing in his mandate that allows him to give him priority to one over the other specially in a company that is not in receivership