September 17, 2008
In light of the recent meltdown of the financial markets and industry, including Bear Stearns, Fannie Mae, Freddie Mac, Merrill Lynch, AIG and the many others to follow in the months ahead, I find it funny and at the same time nauseating that the SEC is willing to dedicate valuable resources and time to this proposed rule.
Perhaps, if the SEC spent less time trying to regulate fixed insurance products, they would have had the time and resources to appropriately regulate the products/securities that they currently have jurisdiction over.
Did they warn consumers about the mortgage fraud that was occurring? No, but they sure spread lies and half truths about indexed annuities. More people have been or will be harmed with the mortgage meltdown and subprime loans, then ever will be if they bought an indexed annuity. In fact, seniors that did purchase an indexed annuity are probably rejoicing that they have a minimum guarantee, even if the S and P goes down 5-10% in one day.
Where is Mr. Cox now when the markets and financial industry for which he has been appointed to regulate and oversee is crumbling before our eyes?
Perhaps it is time Cox and the SEC get their own houses in order before they come after the insurance industry and fixed insurance products like indexed annuities.
Did Mr. Cox have insight to the coming storm and recognized that once the dust settled, his securities buddies wouldn't be able to sell anything to anyone. So is he now attempting to reclassify insurance products as securities to ensure the securities industry of continued sales and revenue?
I emphasize that a client will not lose one penny with an indexed annuity, regardless of what the market did or does in the troubling months ahead.
If I were a senior, I would be more afraid of Cox and the SEC, then some insurance agent that is trying to sell me a product with strong guarantees of principal and interest crediting that will still provide me with access to my retirement assets. I would also still be pissed at the stock broker that sold me Fannie Mae or AIG stock that is now worth nothing.
What is the old adage Mr. Cox, "People in glass houses should not throw stones....."?