Viewpoint/Letters

In response to Evan Cooper's July 9 OpINion Online column, "Dick Grasso: He earned every penny," it would take a person 187 years earning $1 million a year to match former New York Stock Exchange Chairman Richard Grasso's obscene pay package — never spending a penny.

Grasso’s pay package at NYSE was obscene

In response to Evan Cooper’s July 9 OpINion Online column, “Dick Grasso: He earned every penny,” it would take a person 187 years earning $1 million a year to match former New York Stock Exchange Chairman Richard Grasso’s obscene pay package — never spending a penny.

It would take a person 1,875 years earning $100,000 a year to do the same — never spending a penny.

It isn’t so easy to get into the six figures, and it represents a financial accomplishment for many. I don’t speak for my firm but only for myself and all the people who need one or two jobs to make ends meet.

Marie-Joele Ingalls

Executive assistant to the senior vice president
Raymond James Financial Services Inc.
St. Petersburg, Fla.

Security Benefit doesn’t lead in subprime exposure

The June 30 issue article “Subprime exposure afflicts Security Benefit Life Insurance” contains attributed comments made to me that are factually incorrect and inaccurate.

For the record, Security Benefit Life Insurance Co. of Topeka, Kan., doesn’t have the highest subprime exposure of an insurer as a portion of total capital, despite what is attributed to me in the article.

While Fitch Ratings Ltd. of Chicago thinks that Security Benefit Life’s surplus exposure to subprime-related investments is significantly above average for the life insurance sector overall, Security Benefit Life doesn’t actually have the highest degree of subprime exposure among its insurance peers.

I would also like to point out that the attribution of a second quote to me is inaccurate and misleading.

As is the case with any downgrade, Fitch’s downgrade of Security Benefit Life’s insurance financial-strength rating to BBB- June 23 reflects our opinion that there is an increased risk of the company’s having difficulty performing on its obligations. The downgrade doesn’t indicate a “high” risk, as the article states me as saying.

According to Fitch’s published rating definitions, Security Benefit Life’s BBB- insurance financial-strength rating denotes an adequate capacity to meet policyholder obligations relative to all other issues or issuers in the same country, across all industries and obligation types. However, changes in circumstances or economic conditions are more likely to affect the capacity for timely payment of policyholder obligations than for financial commitments denoted by a higher-rated category.

Bradley S. Ellis

Director, North American Insurance Ratings Group

Fitch Ratings Ltd.

Chicago

Editor’s note: While we welcome the comments from Mr. Ellis, InvestmentNews stands behind the story and the accuracy of reporter Darla Mercado’s reporting.

Articles about EIA proposal deemed blogworthy

I enjoyed the July 14 article “State insurance regulators are angry about EIA proposal,” about Iowa Insurance Commissioner Susan Voss meeting with Securities and Exchange Commission Chairman Christopher Cox to discuss her concerns about the equity index annuity proposal.

I mentioned the article, as well as the companion piece, “Agents ex-press concern about higher costs and loss of control over production,” on my life insurance law blog.

I look forward to reading more about this in InvestmentNews as the proposal moves through the regulatory process.

Cailie A. Currin

Life insurance compliance attorney

The Currin Law Office LLC

Greenwich, N.Y.

Youth, family education key to better investors

II loved the articles on the Wall Street Wizards Urban Financial Literacy Program of Oakland, Calif., in the May 26 and June 2 issues.

I am a former broker who founded a social entrepreneurial organization that concentrates on youth financial literacy. I think youth and family education are the keys to developing better investors and smarter consumers, so articles such as the ones on the Wall Street Wizards really appeal to me.

Sam X. Renick

Founder and chief executive

It’s a Habit Co. Inc.

Los Angeles

Wants to get involved with the Wall Street Wizards

I read the articles on the Wall Street Wizards Urban Financial Literacy Program and would like to get involved. Can you please pass my information along to the founder?

Gordon B. Ward

Branch manager

Lincoln Investment Planning Inc.

Cranford, N.J.