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(Lenox Hill has primary liability coverage through this company, setting aside reserves for larger claims).
Rather than setting aside reserves for such a shortfall, Equitable had chosen to pay out excess returns to policyholders.
Rules about matters such as setting aside reserves to cover bad loans vary from country to country, as the continuing debacle of Japan's banks has made clear.
He said his net worth, once hundreds of millions of dollars, was down to around $20 million, after setting aside reserves for legal fees and court settlements, and that his liquid assets were less than $1 million.
The prospect of more failures has led the F.D.I.C. to seek new ways to replenish the fund with higher and earlier payments by healthy banks, even after setting aside reserves for future losses.
Here is how I make sense of it.Fact one there are several dozen trillion dollars of these things out there an amount that makes Paulson's $700 billion look like a rounding error.Fact two they are basically insurance policies on bond defaults that are written without regulation, so the usual insurance-industry practice of setting aside reserves does not apply.
Similar(52)
Many banks have set aside reserves to cover potential losses.
The bank said it had previously set aside reserves for these settlements.
As a result, the Federal Reserve Board has been seeking to make banks set aside reserves for them.
Xerox has set aside reserves in several Latin American countries as a result.
Companies have considerable discretion over when they book a profit or set aside reserves against a future loss.
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