Markets stumble as Spitzer turns on insurance sector
Bond investors were shocked out of their complacency this week as the New York attorney general's investigation of the insurance industry and an SEC probe into corporate reporting of pension and healthcare liabilities sent spreads gyrating wildly and deterred potential issuers.
Spreads on insurance company bonds widened this week after New York attorney general Eliot Spitzer last Friday accused the insurance industry of ?widespread corruption? and launched a suit against Marsh, the world's biggest insurance broker, over commission payments from insurance companies.
Two executives at American
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