What Companies Are Doing

Customized Choices For CPAs
Joe Yagar of NL Financial Alliance is taking his company’s message for CPAs on the road. At the recent Financial Planning Association (FPA) Financial Fitness Workshop in NYC, he showed CPAs how NL Financial is helping them expand their practices by advising their clients on investment options along with insurance, asset accumulation and retirement products. NL Financial will customize any approach that works for a particular CPA. Contact: (646) 898-3562 or email: yagar_joe@nlvmail.com

End of the Free-Wheelers?
Financial pundits are talking about the “huge implications” of Goldman Sachs and Morgan Stanley becoming bank holding companies, thus ending the free-wheeling days of Wall Street’s invest ment banks. The year began with five investment-bank Goliaths ruling Wall Street. Now, none remain in their previous form.

Borrowing short-term to lend and invest long-term has essentially given way to safety of deposit insurance and full access to central bank liquidity. By agreeing to much tighter Fed regulation as BHCs, Goldman and Morgan moved to avoid the fate of rivals that either collapsed or were taken over. They’ll also gain greater access to central bank funds and find it easier to buy retail banks. While the full implications are not yet clear, some are saying everything from compensation practices to recruitment to culture could change.

AIG Learns the Hard Way
Reeling from criticism for throwing a lavish $440,000 party at a California resort for top agents while its financial practices were under fire, AIG suddenly scrapped another such shindig to “motivate and educate” 150 independent producers. No one would bat an eye if this was any other company, but AIG had just taken an $85 billion bailout loan from the government. What possessed AIG to go through with the first party while the company was swimming in negative publicity befuddles industry observers. The company reportedly considered buying advertising to explain its position, but was discouraged from doing so by its PR consultant who called it “a really bad idea.” AIG has also discontinued its brand and corporate ads, which are themed The strength to be there – a message clearly thrown into question by the bailout.

Company Briefs — Insurance
Banner Life is strengthening its position in the universal life market with the first in a series of new products. Life Umbrella® UL 120 combines the permanence of lifetime, no-lapse, guaranteed coverage with the fl exibility of limited lifetime payment options.
For more info: Hank Cushard, vp marketing, (301) 279-4862.

Prudential Annuities is sponsoring a group of dedicated online networks, which contain real-time content organized to meet the specific needs of financial advisors. The interactive destinations offer advisors breaking news, new product information, industry best practices, network directories, blogs and commentary to promote peer-to-peer dialogue. Video programs, custom polls and downloadable widgets are also offered. For info: Lisa Bennett (973) 802-2894.

Allianz SE will make a $2.5 billion capital investment in The Hartford Financial Services Group. Allianz will buy $750 million of preferred shares convertible to common stock and $1.75 billion of 10% junior subordinated deb entures. Allianz will also receive warrants which entitle it to purchase $1.75 billion of common stock, subject to shareholder approval.

Amalgamated Life, the 65-year-old labor insurance company, has moved 400 jobs from Manhattan to new corporate headquarters in the former General Foods headquarters at 333 Westchester Ave., White Plains. The move signifies the consolidation and reintegration of several company divisions coincidental with the naming of new management personnel.
Contact: Kay Spalding (212) 539-5826 or kspalding@ amalgamatedlife.com

Aetna is allowing an independent panel of physicians to review its decisions when it rescinds policies under its individual health insurance plans. Policyholders will be able to obtain the reviews at no cost and the panel’s decision will be binding on Aetna. For info: Mohit Ghose (860) 273-0123.

Company Briefs – Technology
Laserfiche is introducing software which makes enterpriselevel business process management technology available to registered investment advisors and independent brokerdealers. Called Avante™, the software combines key aspects of an end-to-end document management system with critical workfl ow automation tools to streamline advisors’ back offices, simplify their operations and allow them to scale their business on existing infrastructure.
For info: Francine Marlenee (562) 988-1688 x211 or fmarlenee@laserfiche.con

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