November 10, 2004
Investigators look into loans disguised as insurance to boost balance sheets of customers
Citing people familiar with the matter, the Journal said the Securities and Exchange Commission is conducting an industry-wide investigation into whether insurers helped customers improperly smooth their earnings by selling them financial-engineering products designed to look like insurance but were really loans.
According to the article, the SEC is centering its probe on a host of products that achieve certain results for companies' financial statements, instead of traditional insurance.
Posted by Tom Troceen