Is Spitzer Preparing Marsh, Act II?

[seemslikeadream]

Published: October 17, 2004


LIKE the universe itself, corporate chicanery just seems to keep on expanding. Unlike earlier versions, however, the latest scandals tend to implicate not just individual companies but entire industries.

In last week's revelations, courtesy of a civil suit filed last week by Eliot Spitzer, the New York attorney general, the insurance industry got its turn. Stocks of major players in the industry have been hammered and investors are rightly wondering where the next bombshell might fall.

Mr. Spitzer's suit, which detonated Thursday, was filed against Marsh Inc., whose parent, Marsh & McLennan, also owns Putnam Investments and Mercer Inc., the consulting unit. The suit was a shocker even to industry veterans because it disclosed Mr. Spitzer's findings of phony bids designed to direct business to certain insurers and to keep insurance rates high. The suit said A.I.G., Ace Ltd. and the Hartford, a unit of Hartford Financial Services, took part in the schemes with Marsh.

Shares in Marsh, the largest insurance broker in the world, have lost 37 percent of their value since Mr. Spitzer filed his suit, wiping out almost $9 billion in investor wealth. Interesting isn't it, how investors shrugged off Mr. Spitzer's investigation into improper insurance practices at Marsh and other companies when it came to light on April 23? Back then, Marsh's shares were at $45.01; they stood at $46.13 before the suit was filed last week.

more
http://www.nytimes.com/2004/10/17/business/yourmoney/17watch.html

[lucky777]

1. He's the only one with balls to go after corporate America

Like him or not, he does the job that the federal government is too afraid to do. All of the laws that he uses have federal counterparts, but the government is afraid. In fact, the SEC is angry with Spitzer for cracking down on securities fraud under the absurd theory that we can't have 50 different states all suing corporations, it has to be done centrally by the federal government; fine, but they don't lift a finger.

[MasonJar]

2. Afraid? That section of the government is run by Asscrass. Is

any other explanation necessary. Would he waste his time on corporate fraud with important things like Justice's breasts and New Orleans prostitutes and doctors ordering weed for cancer and Aids patients?

[shraby]

4. Don't forget busting grannies and grampas

for bringing in medicine from Canada.

[IHateFundies]

3. President Kerry should make Spitzer Attorney General

that would be great