Senator's 'Bankrupt' Comment Spooks Insurers

Law360, New York (October 2, 2008, 12:00 AM EDT) -- Senate Majority Leader Harry Reid has backtracked on his claim that a major insurance company was about to go bankrupt, a statement that caused a stir in the insurance industry this week.

During a press conference Wednesday about the government's proposed $700 billion bailout, Reid said it was important for the package to pass because because failure to do so would threaten a big-name insurer.

“One of the individuals in the caucus today talked about a major insurance company – a major insurance company – one...
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