Lots of new stories about price fixing in the insurance industry.
Marsh & McLennan, IMG implicated - stock getting pummeled. Looks Enron-esuqe, or bigger.
I think this blows the "greedy trial lawyer" memr out of the water.
Dem AGs getting very aggressive
in Connecticut:
Connecticut Attorney General Richard Blumenthal's office on Tuesday issued at least 20 subpoenas to insurance companies and brokers.
...
"The focus of our investigation is bid-rigging and price-fixing that essentially cripples competition and raises insurance costs for corporate citizens and ordinary consumers," Blumenthal said. He did not name the companies that are being subpoenaed.
in California:
In California, Insurance Commissioner John Garamendi has said he will go to court to challenge hidden fees paid to brokers who promote certain policies without telling customers they have a financial incentive to do so.
"In California, that's illegal," Norman Williams, a spokesman for Garamendi, said. "The commissioner does plan to seek some kind of civil action to correct these practices."
The Wall Street Journal reported Tuesday that Garamendi would file the suits within the next two weeks against several companies that sold personal insurance, including life, auto and homeowners' policies.
http://www.newsday.com/news/local/wire/ny-bc-ct--insuranceprobe1020oct20,0,7458702.story?coll=ny-ap-
regional-wire