State official lists new financial issues of concern

ALBANY, N.Y. (AP) – New York financial regulators
have begun focusing on issues including the independence and integrity
of monitors installed at banks and other companies after regulatory
violations or crimes.

In an economic address this week, Department of
Financial Services Superintendent Benjamin Lawsky says another emerging
concern is private equity-controlled insurers. They now account for
nearly 30 percent of the indexed annuity market and 15 percent of the total fixed
annuity market. Both tripled from a year earlier.

The department also is focusing on captive
insurance companies with limited reserves used to offload risk at large
financial firms. The department believes that “shadow insurance” puts
stability of the broader financial system at greater risk.

Copyright 2013 The
Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.

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