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Several life offices are developing a solvency gap, which needs to be covered.
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This legislation would also close the long-range solvency gap predicted in 2037 by phasing out the $106,800 cap on income subject to the payroll tax.
Tumbling stock market returns have left R&SA exposed to the liability, and the investors' money could be needed to bridge the solvency gap.
"We don't face a solvency problem.
But from a solvency perspective that is a secondary issue.
"It's a liquidity solution to a solvency problem," he added.
It is not a liquidity issue, it's a solvency issue".
"A.I.G. had a liquidity problem, not a solvency problem," Greenberg said.
"A lot of what we are dealing with is a solvency problem.
"It's not so much, Is Conseco viable from a solvency perspective?
A solvency crisis?
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