Wall Street Gambles Again: Bankers To Buy Up Life Insurance Policies Of Ill And Elderly

nytimes.com:

After the mortgage business imploded last year, Wall Street investment banks began searching for another big idea to make money. They think they may have found one.

The bankers plan to buy "life settlements," life insurance policies that ill and elderly people sell for cash -- $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person.

Read the whole story: nytimes.com

Comments

[research]

Never take out a contract on your death.

[factotem]

Hi! We're the USA.
We used to have a conscience, but we sold it to pay for our house in the Hamptons. Our soul too.

[liberal user]

Obama isn't doing enough with regards to executive pay and bank & wallstreet regulation

good articles: http://www.iamned.com

[jason10006]

This is not new at all, this reporter did zero research. Banks and brokers have been buying these policies since the 80s, it started largely with AIDs patients, and I PERSONALLY know people who would have NEVER been able to pay their medical bills if not for being able to sell their policies. The only thing new is bundling them. But life markets have been around since the 80s. And I know the Huffposters knee-jerk is that 100% of everything Wall Street does is automatically evil, but in this case its really not. People want the money or often NEED the money before they die.

[tuberider]

And they have every right. That was the deal: Easy Money 4 Everlasting Soul. Enjoy your chalets chillun'. Luke, 12:49 P.M., Vegas.

[Stretchumall]

This will never work, it is a losing proposition.

[StephenBarry]

If Wall Street had its way, they would bottle-up all atmospheric oxygen and force us to work for a canister a day and some food. After all the houses are foreclosed, they would store us in warehouses like battery hens. Then when we are too old or ill to work, they would withold a canister from us and cash in on the insurance policy. Murder ? No, a mere rationalizing of corporate resources.

[Name Not In Use]

It worked for Wal Mart:

http://news.tbo.com/news/metro/MGB5SEJVN3F.html

[Coastalthinker2]

I'm sorry, but I find this beyond repugnant to bundle life insurance policies in this manner for a buck. When is the government going to regulate these disgusting actions by bankers?

[Name Not In Use]

As soon as they stop funding their re-election campaigns.

End of story.

[TinRoofRusted]

You took the words right out of my mouth.

[watchTVgetSTUPID]

I figure the Banks will take the money and juggle the books to eliminate the future liability. In the end, when this new toxic asset ripens, the Bankers want as many people as possible to be desperate to keep the Banks alive with future tax payer bailouts.

Meanwhile Tim Geithner is good with this.

[StephenBarry]

When the toxic assets ripen, there will be nothing to foreclose except warm bodies. They will either need to kill us or drop all of our protections - medicare / medicaid / FDA / environmental etc to help us shuffle off the mortal coil.

[Truelee]

Wall Street and the banks want people to die so they can collect people's life insurance money! Wall Street privatized death panels.

[Jeff Kreisler - Huffpost Blogger]

Awesome.
Wall Street Death Panels coming soon...

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[JessWonderin]

guess it's TOUGH to get fed funds for 1%, or pay 1.5% Saving Rate and have to struggle on 6% guaranteed home loans and 30% Credit Cards loans . . . . .or 687% return on their funded "payday loans".

[joe conservative]

Priceless, banks alredy see blood in the water should healthcare reform pass, ROTFLMAO.

[medicontheedge]

didn't some insurance companies do this in nazi occupied europe to jewish residents?

[Name Not In Use]

Never heard about that. Sounds revolting enough to be true, though.