CAN YOU SPARE A DIME? – MetLife is rumored to be eyeing Dime Bank, a New York regional bank, after Dime rejected a hostile bid takeover from North Fork Bancorp.  However, Met also announced a $1 billion stock buyback, which usually signals that acquisitions are unlikely.  On the other hand, bucking the merger trend, Met just sold Farmers National of Omaha to Farmers National management for undisclosed terms.

ING AND AETNA - ING and Aetna ended exclusive discussions regarding ING's purchase of Aetna's financial services and international businesses, after the two companies failed to agree on a price.  The problem occurred when Aetna announced it had started talks with other potential buyers. Aetna's shares fell nearly 5%, reflecting investor disappointment that a deal with ING was not imminent.  ING will complete its Reliastar purchase and look for other U.S. "buys."  ING is selling its entire stake in rival Dutch insurer Aegon to help finance its purchase of Reliastar.

PRU ON NYSE – No, not Prudential of America, at least not yet.  Prudential Plc of England has listed itself on the New York Stock Exchange with an offering intended to raise $200+ million. Apparently the No. 2 insurer in England will use the money to add other U.S. holdings to its "crown jewel," Jackson National, and not lose ground to Aegon, Allianz and ING. PS: South African insurer Old Mutual just acquired United Asset Management for $1.46 billion, while the Royal Bank of Canada announced it will acquire Liberty Life Insurance Company and Liberty Insurance Services Corporation in a deal valued at $650 million.

ESIGN - The Electronic Signatures in Global and National Commerce Act (ESIGN) was signed by President Clinton on June 30 and will become law effective October 1, 2000. In essence, ESIGN would preempt most state laws from denying the use of electronic signatures and electronic records except in limited situations. Proof that the electronic records were, in fact, signed by the person whose electronic signature appears on the record will still be needed. The new process is receiving positive acceptance from companies, associations (the IIAA in particular) and planners. According to planner and author Ed Morrow, "The customers, the financial services industry and the forests will benefit."

NEW CHIEF – Gary Wendt, former CE Capital CEO, was named Conseco's new chairman and CEO.  Conseco shares rose on the news.
 

CNA – CNA Financial is expected to decide the future of its life insurance and life reinsurance units. Suitors for the deal, which could fetch up to $2 billion, are said to be GE Financial, GE Capital, Citigroup, Travelers, and American General.  Since the business has a book value of $2.5 billion, CNA may elect to sell piecemeal to several bidders rather than as a whole to one party.

QUACKENBUSH RESIGNS – In what seemed inevitable, California Insurance Commissioner Charles Quackenbush resigned Wednesday under increasing pressure concerning his alleged sweetheart deals for insurers. A growing body of evidence indicates that he used his state office to set up a political operation and financed the operation with lenient settlements with insurance companies.  Quackenbush's resignation averted the possibility of impeachment, but a criminal investigation continues.
 
RACE-BASED SETTLEMENT – American General has reached a $215.5 million settlement to compensate policyholders who were charged higher premiums because of their race.  In related news, the New York Insurance Department is requiring all insurers that do business in the state to file, by August 15, a comprehensive report of their involvement, if any, in race-based underwriting or pricing.

FEDERAL DEPOSIT INSURANCE – Federal Reserve Chairman Alan Greenspan is opposed to proposals to raise the limit on bank deposits covered by federal deposit insurance from $100,000 to $200,000. The banking lobby wants it, but Greenspan says "giving increased subsidies to upper-income individuals almost by definition is, in my judgment, a mistake."

RACKETEERING – The California Medical Association is suing the state's three largest for-profit health insurers for imposing unfair contract and payment terms on doctors. The suit (under the federal Racketeer Influenced and Corrupt Organization Act) claims that California physicians have had their business damaged and their patients victimized because of racketeering activity on the part of California Blue Cross, Health Net and PacifiCare Health Systems.

MORE RACKETEERING – A former New York Life vice president has filed a federal class action racketeering lawsuit against the company alleging that employee and agent pension and 401(k) plans were used as "seed money" for NYL's mutual fund business.  The former employee also claims that he was fired when NYL execs feared he would "blow the whistle."  Federal law allows the practice of investing retirement money in a company's own products, but only if the decision is made to benefit employees.  Similar lawsuits are pending again First Union Corp. and SBC Communications.