Drudge has headlines such as this today.........
<FRIGHT OF THE FINANCIALS...
Fed eyes extending emergency loans for Wall Street...
MORTGAGE MESS: FREDDIE, FANNIE Plunge on Speculation Firms May Need to Raise $75 Billion...
...home loan titans at risk?>
With such loses taking place on Wall Street I think the bigger wirehouse member firms have bent the ear of FINRA and NASAA asking them to put the pressure on the SEC. Wall Street sees the future of baby boomer's moving even more money from the equities markets. So the wirehouses want:
1. FIA's to be "their" product
2. IF they control FIA's they can control, slow down the movement out of equities.
When you read that the SEC feels that benefits outweigh the increasing costs, loss of revenue and diminished competition, my question is...."benefits who?" I don't think Econ 101 ever teaches that increased costs, loss of revenue and diminished competition is ever good for the buyer of the product.
Therefore I say it benefits:
1. Big wirehouses
2. FINRA $membership
Summary of SEC Proposal to make Index Annuities Securities - 7/2/2008 - insurancenewsnet.com
By Jack Marrion
"In any event, the proposal says it would enhance investor protection, because index annuities would be regulated by FINRA and sold by registered representatives. The proposal also asks whether the securities treatment should be extended to index life insurance or any fixed insurance product using a market value adjustment.
SEC notes that this proposal will have costs and could result in a loss of revenue and diminished competition, but that the benefits outweigh the costs. SEC is accepting comments of the proposal until Sept. 10 and the proposal will be effective for all index annuities sold one year after adoption."
<FRIGHT OF THE FINANCIALS...
Fed eyes extending emergency loans for Wall Street...
MORTGAGE MESS: FREDDIE, FANNIE Plunge on Speculation Firms May Need to Raise $75 Billion...
...home loan titans at risk?>
With such loses taking place on Wall Street I think the bigger wirehouse member firms have bent the ear of FINRA and NASAA asking them to put the pressure on the SEC. Wall Street sees the future of baby boomer's moving even more money from the equities markets. So the wirehouses want:
1. FIA's to be "their" product
2. IF they control FIA's they can control, slow down the movement out of equities.
When you read that the SEC feels that benefits outweigh the increasing costs, loss of revenue and diminished competition, my question is...."benefits who?" I don't think Econ 101 ever teaches that increased costs, loss of revenue and diminished competition is ever good for the buyer of the product.
Therefore I say it benefits:
1. Big wirehouses
2. FINRA $membership
Summary of SEC Proposal to make Index Annuities Securities - 7/2/2008 - insurancenewsnet.com
By Jack Marrion
"In any event, the proposal says it would enhance investor protection, because index annuities would be regulated by FINRA and sold by registered representatives. The proposal also asks whether the securities treatment should be extended to index life insurance or any fixed insurance product using a market value adjustment.
SEC notes that this proposal will have costs and could result in a loss of revenue and diminished competition, but that the benefits outweigh the costs. SEC is accepting comments of the proposal until Sept. 10 and the proposal will be effective for all index annuities sold one year after adoption."