BestWeek: Observers Say Backlash Over AIG Bonuses Could Endanger Future Fed Payouts.

OLDWICK, N.J. -- Last week it appeared the future governmental support of besieged insurer American International Group Inc. (AIG) (New York, NY) could be unhinged by the payment of $165 million in bonuses, according to this week's BestWeek U.S./Canada. Lawmakers at hearings spoke of fielding calls from constituents expressing outrage over the payments. But John D. Martini, a partner at Reed Smith, said the country could be getting mired in anger and losing sight of the bigger picture.

In BestWeek Europe, a call by the chairman of the U.K. Financial Services Authority (FSA) for stricter global banking regulation may feed momentum toward closer overall scrutiny of financial services. Adair Turner, the FSA chairman, has recommended changes to existing rules covering such areas as bank capital and liquidity. Turner also said credit rating agencies should be subject to regulation and that "major reforms" be introduced in the regulation of banks in Europe.

Also in BestWeek U.S/ Canada, with credit-related investment losses and slumping stock markets hammering their profits for more than a year, the U.S. life insurance industry's total market capitalization has dropped in a big way. That makes it difficult for some companies to use their own stock to access cash at a time they're preserving as much of it as they can by suspending share buyback programs.

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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.