• Greenspan expects the credit crunch to take a toll on the overall U.S. economy. 
• Greenspan says U.S. economic growth slowing.
• Greenspan says U.S. dollar not a problem right now.
• Greenspan: Worst of Subprime Crisis Over

EXECUTIVE PAY AGAIN – With research showing CEOs are receiving as much as 10 times as much in compensation as other top company executives, the SEC is starting to ask companies about "the gap." "[This] is a red flag for investors. It is a classic sign that the board may be beholden to the chief executive," said Christopher Ailman, CIO of California State Teachers' Retirement System. 

DEFICIT CUT $85 BILLION - Tax receipts continue to grow and the federal budget deficit now totals $163 billion...a decline of $85 billion from the prior year.  The fiscal 2007 deficit equals 1.2% of gross domestic product, compared to around 1.9% in fiscal 2006, according to reports.

MENTAL HEALTH PARITY – A House Health Subcommittee has approved a version of a major mental health parity bill that would require group health plans that offer mental health benefits to provide equal treatment for physical and mental health conditions. Employer groups and other critics say the bill could increase costs by requiring affected group plans to cover all conditions listed in the Diagnostic and Statistical Manual of Mental Disorders (DSM). FYI, the DSM includes diagnoses such as “jet lag” and caffeine-related disorders. Can you spell rate increases?  Alternatively, employers may consider dropping mental health benefits altogether. 

BUSH VETOES SCHIP BILL - President Bush has vetoed H.R. 976, a bill that would have extended the State Children’s Health Insurance Program. Bill supporters have argued that the extension was important to protecting the ability of children to get regular, timely access to health care. The bill called for increasing funding from $25 billion to $60 billion and Bush has proposed increasing SCHIP funding to $30 billion. In addition to being too expensive, President Bush believes the bill would have given states too much flexibility to cover moderate-income children as well as low-income children.

CREDIT RATING AUTO PREMIUMS – The practice of insurers basing auto insurance premiums on a customer's credit rating was questioned at a House hearing, with critics saying it disproportionately hurts young people and minorities. Insurance industry representatives were quick to defend the practice as actuarially sound and a valid indicator of risk.

LL GLOBAL - The boards of LIMRA International and LOMA will collaborate to form LL Global Incorporated, an umbrella organization intended to provide a unified management structure for both groups. As a result, all 800 LIMRA members and all 1,200 LOMA members would become LL Global members. 

FEWER LIFE APPS...AGAIN - MIB reports U.S. life insurers checked in 4.8% fewer individually underwritten life insurance applications in August than they checked in the comparable month a year earlier. The MIB activity index has fallen during most months for the past three years.

PRU SUES STATE STREET - Prudential has filed suit against units of State Street, seeking restitution for funds sold by State Street that suffered heavy losses. Pru charges that without notification State Street made "undisclosed, highly-leveraged investments in mortgage-related financial instruments" yielding "catastrophic results." 

ALLIANZ SETTLES WITH 60,000 ANNUITY HOLDERS - Allianz has settled claims that the company misled clients, many of them elderly, when they purchased a certain annuity.  Allianz will offer the investors cash payments to settle the case...the amounts varying, depending on how much money each investor held in an annuity on a specific date. All net of plaintiff legal fees, we are sure.

COUNTRYWIDE CEO PROBED – In the wake of his state pension fund losing money on investments in Countrywide, North Carolina Treasurer Richard Moore is asking the SEC to investigate stock trades by Countrywide CEO Angelo Mozilo. "While Countrywide shareholders have faced massive losses, Mr. Mozilo has been stuffing his pockets."

GRASSO STILL FIGHTING – Former NYSE Chairman Dick Grasso is on a mission to clear to clear his name four years after accusations that his pay was inflated and improperly obtained. Actually, it is not just his reputation...the pending case by New York Attorney General Andrew Cuomo could force Grasso to return much of his pay to the exchange. 

NEW PASSPORT RULES – If you're a U.S. citizen traveling by air between the U.S. and Canada, Mexico, the Caribbean or Bermuda, you need a passport. Children under 16 and traveling with a parent or guardian will need to prove they have at least applied for a passport. If you're driving or cruising, you won't need passports...until next year. If you don’t have a current passport, go to the State Department Web site at www.travel.state.gov. If you're getting a passport for the first time, you'll have to go to a passport acceptance facility in person.