Senator Harry Reid Backtracks On 'Bankruptcy' Comments (MET, HIG)
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Yesterday, Senator Majority Leader Harry Reid said a a 'major insurance company' is on the verge of bankruptcy. His comments caused life insurance stocks to plummet. For example, MetLife (NYSE: MET) fell by more than 15% and Hartford Financial Services (NYSE: HIG) fell by approximately 35% yesterday. Both MetLife and Hartford are gaining back some ground after Senator Harry Reid clarified his bankruptcy comments.
Yesterday, MetLife did issue a response to Senator Reid's comments. "The statement yesterday by Senate Majority Leader Harry Reid does not apply to MetLife. MetLife is financially sound and has high ratings from all of the major insurance ratings agencies. MetLife is fully able to meet all its obligations," the company said.
Hartford spokeswoman Debora Raymond said her company was not on the verge of bankruptcy.
Finally, Senator Harry Reid had a spokesperson backtrack for him late Thursday and said that the senator was not aware of any company being in danger of bankruptcy.
Senator Reid's spokesperson told CNNMoney.com, "Senator Reid is not personally aware of any particular company being on the verge of bankruptcy. He has no special knowledge about [a bankruptcy] nor has he talked to any insurance company officials. Rather, his comments were meant to refer to the conditions in the financial sector generally. He regrets any confusion his comments may have caused."
The Hartford Financial Services Group, Inc. (The Hartford) is a diversified insurance and financial services company. MetLife, Inc. (MetLife) is a provider of insurance and other financial services with operations throughout the United States, and the regions of Latin America, Europe and Asia Pacific.
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Yesterday, MetLife did issue a response to Senator Reid's comments. "The statement yesterday by Senate Majority Leader Harry Reid does not apply to MetLife. MetLife is financially sound and has high ratings from all of the major insurance ratings agencies. MetLife is fully able to meet all its obligations," the company said.
Hartford spokeswoman Debora Raymond said her company was not on the verge of bankruptcy.
Finally, Senator Harry Reid had a spokesperson backtrack for him late Thursday and said that the senator was not aware of any company being in danger of bankruptcy.
Senator Reid's spokesperson told CNNMoney.com, "Senator Reid is not personally aware of any particular company being on the verge of bankruptcy. He has no special knowledge about [a bankruptcy] nor has he talked to any insurance company officials. Rather, his comments were meant to refer to the conditions in the financial sector generally. He regrets any confusion his comments may have caused."
The Hartford Financial Services Group, Inc. (The Hartford) is a diversified insurance and financial services company. MetLife, Inc. (MetLife) is a provider of insurance and other financial services with operations throughout the United States, and the regions of Latin America, Europe and Asia Pacific.
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