A very good idea

That’s why I don’t believe it will happen:

State insurance regulators are considering changes that would require U.S. insurers to hold more capital against some of the riskier mortgage bonds they have been scooping up lately as high-yielding investments.

The moves under discussion could increase by billions of dollars the total amount industrywide that insurers including American International Group Inc., AIG +2.10% MetLife Inc. MET +0.58% and others must hold to protect policyholders, estimate some analysts.

The changes could be implemented later this year by the National Association of Insurance Commissioners, an organization of state officials that sets solvency standards. The shift, currently under study by an NAIC task force, would make it costlier for insurers to hold certain bonds backed by subprime mortgages and other risky home loans.

Such a change could cool demand from insurers for the once-toxic securities that lost value when the housing bubble burst, but that lately have become some of the hottest assets in the credit markets. Strong investor demand for those securities recently helped the Federal Reserve Bank of New York to profitably sell two large portfolios of subprime and other mortgage bonds it acquired in the 2008 bailout of AIG.


Bad news for Camden NJ:

Crime-ridden Camden, New Jersey – often referred to as the most dangerous city in the United States—is getting rid of its police department.

In the latest example of a cash-strapped municipality taking drastic measures to deal with swollen public sector liabilities and shrinking budgets, the city plans to disband its 460-member police department and replace it with a non-union “Metro Division” of the Camden County Police. Backers of the plan say it will save millions of dollars for taxpayers while ensuring public safety, but police unions say it is simply a way to get out of collective bargaining with the men and women in blue.

“This is definitely a form of union-busting,” Camden Fraternal Order of Police President John Williamson told FoxNews.com. “This method is unproven and untested, to put your faith in an agency that doesn’t even [yet] exist.”

Camden County Mayor Dana Redd has said layoffs of the city’s police force will begin by the end of the month. Only 49 percent of current city police officers will be transferred to the new county division, whose members will begin a four- to five-month training program.

“The officers who are getting laid off are going to have to be the ones who train their replacements,” Williamson said.

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