Libor scandal makes it more costly for bankers to get insured
News On Japan via Japan Today -- Aug 09
Some of the world's largest insurers for corporate directors and officers could be on the hook for hundreds of millions of dollars in claims over the next few years to cover legal costs for people caught up in the LIBOR scandal.
As a result of those costs, which insurers fear could accumulate for the next few years, already rising insurance rates stand to go even higher for all companies.
Directors and officers (D&O) insurance pays a wide range of defense costs for executives who get sued as a result of business decisions, from the initial inquiries all the way through the last stages of trial or settlement.
The sums involved are substantial. Consultants Towers Watson reported that in 2011, companies with more than $10 billion in assets on average carried $187.5 million in insurance coverage.
More than a dozen banks are under investigation by authorities in Europe, Japan and the United States over the suspected rigging of the London interbank offered rate (Libor), a key interest rate used to price trillions of dollars worth of financial products.
A collection of materials related to a 17th century mission sent by a Japanese feudal lord to Europe and the world's oldest autographic diary left 10 centuries ago by a Japanese regent have been selected for the UNESCO Memory of the World registry, the Japanese education ministry said Wednesday. (Global Post )
Almost 1,500 people were transported to hospitals by ambulance due to heatstroke last week, up sharply from 942 in the preceding week, the Fire and Disaster Management Agency said Tuesday. (Japan Times )
Among about 200,000 traffic signals nationwide, 16 percent are being used beyond the end of the expected lifetime of their electrical systems and some have even toppled over due to age, according to the National Police Agency. (Yomiuri )
In May, Akira Ikoma, the editor of a guide to men's entertainment called Ore no Tabi (My Journey), said that "Abenomics" had caused a spike in prices at high-end soapland bathhouses in Tokyo. However, the same editor tells Shukan Post (June 28) that the initiative is not impacting the low-end market in the same way. (Tokyo Reporter )
Tokyo District Court decided on Monday to open planned examinations of three witnesses who are former senior members of the Aum Shinrikyo doomsday cult and now death-row inmates, during an upcoming trial of another former senior Aum member. (Jiji Press )