Sen. Reid's loose lips sink insurance stocks
2:40 PM, October 2, 2008
New York Sen. Charles E. Schumer was accused of speeding the failure of IndyMac Bancorp in July.
Now Senate Majority Leader Harry Reid is getting credit for sparking a blistering sell-off in insurance stocks.
MetLife Inc., Hartford Financial Services Group and Prudential Financial Inc. all fell by double-digit percentage amounts today after Reid on Wednesday said the financial-system bailout plan was crucial because a large insurer was at risk of failing.
Reid specifically cited "a major insurance company -- one with a name that everyone knows -- that's on the verge of going bankrupt," according to Dow Jones Newswires.
Today, the Nevada Democrat backtracked. A statement from his office said that Reid was "not personally aware of any particular company being on the verge of bankruptcy" and that "he has no special knowledge about nor has he talked to any insurance company officials," Dow Jones reported.
But with investors already on high alert after the Federal Reserve’s rescue of insurance titan American International Group Inc. on Sept. 16, and with the credit crunch still making funding difficult for even the largest U.S. financial companies, Reid's comments were the equivalent of pouring gasoline on a grease fire.
MetLife plunged $7.19, or 14.9%, to $40.96; Hartford dived $12.20, or 32%, to $25.91; and Prudential slid $7.15, or 11%, to $57.65.
And no one can blame "short sellers" because all three of the stocks are covered by the Securities and Exchange Commission’s temporary ban on short sales of financial issues.
It's like yelling fire in a crowded movie theater. What the fuck did he think was going to happen repeating unfounded rumors, causing irrational panic, and destroying shareholder equity?
Financial Terrorism = Harry Reid and Chucky Schumer
2:40 PM, October 2, 2008
New York Sen. Charles E. Schumer was accused of speeding the failure of IndyMac Bancorp in July.
Now Senate Majority Leader Harry Reid is getting credit for sparking a blistering sell-off in insurance stocks.
MetLife Inc., Hartford Financial Services Group and Prudential Financial Inc. all fell by double-digit percentage amounts today after Reid on Wednesday said the financial-system bailout plan was crucial because a large insurer was at risk of failing.
Reid specifically cited "a major insurance company -- one with a name that everyone knows -- that's on the verge of going bankrupt," according to Dow Jones Newswires.
Today, the Nevada Democrat backtracked. A statement from his office said that Reid was "not personally aware of any particular company being on the verge of bankruptcy" and that "he has no special knowledge about nor has he talked to any insurance company officials," Dow Jones reported.
But with investors already on high alert after the Federal Reserve’s rescue of insurance titan American International Group Inc. on Sept. 16, and with the credit crunch still making funding difficult for even the largest U.S. financial companies, Reid's comments were the equivalent of pouring gasoline on a grease fire.
MetLife plunged $7.19, or 14.9%, to $40.96; Hartford dived $12.20, or 32%, to $25.91; and Prudential slid $7.15, or 11%, to $57.65.
And no one can blame "short sellers" because all three of the stocks are covered by the Securities and Exchange Commission’s temporary ban on short sales of financial issues.
It's like yelling fire in a crowded movie theater. What the fuck did he think was going to happen repeating unfounded rumors, causing irrational panic, and destroying shareholder equity?
Financial Terrorism = Harry Reid and Chucky Schumer
