Insurers fall on Sen. Reid's bankruptcy comments Thursday October 2, 12:55 pm ET Shares of insurers fall as Sen. Reid says a major insurer is on the verge of bankruptcy NEW YORK (AP) -- Shares of insurers mostly fell Thursday amid overall market uneasiness about the economy and whether the financial bailout package will be able to help the economy avoid a recession. The remarks also came a day after Senate majority leader Harry Reid said a major insurer is on the verge of going bankrupt, but analysts generally said that was not moving the financial sector or the overall market. During a press conference Wednesday, Reid, a Democrat from Nevada, did not disclose the name of the insurer, but said it was brought up by another senator during recent meetings. Reid told reporters Wednesday that "one of the individuals in the caucus today talked about a major insurance company -- a major insurance company -- one with a name that everyone knows that's on the verge of going bankrupt." http://biz.yahoo.com/ap/081002/apfn_insurers_sector_snap.html
But a Reid spokesman, Rodell Mollineau, said Thursday, "Sen. Reid is not personally aware of any particular company being on the verge of bankruptcy. He has no special knowledge about 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."