Do you mean "bancassurance"? If so, that's the scheme in which insurance companies owned by banks use the banks' customer base to attempt to sell its products. It was once outlawed by the Glass-Steagall Act in America, which was cast aside in 1998 following the 1997 merger of Travelers Group and Citicorp that created Citigroup -- at the time, technically illegal, but allowed under a special "waiver" from the federal government.
Today, because of its irresponsible lending and other corporate misbehavior, Citigroup has virtually no insurance assets remaining, after spinning off Travelers 8 or 10 years ago and working to spin off Primerica earlier this year through its IPO to venture capitalists (and the eventual sell-off of its remaining stake to follow, probably before the end of 2011).
Posted: Sun Nov 28, 2010 03:14 pm Post Subject:
Do you mean "bancassurance"? If so, that's the scheme in which insurance companies owned by banks use the banks' customer base to attempt to sell its products. It was once outlawed by the Glass-Steagall Act in America, which was cast aside in 1998 following the 1997 merger of Travelers Group and Citicorp that created Citigroup -- at the time, technically illegal, but allowed under a special "waiver" from the federal government.
Today, because of its irresponsible lending and other corporate misbehavior, Citigroup has virtually no insurance assets remaining, after spinning off Travelers 8 or 10 years ago and working to spin off Primerica earlier this year through its IPO to venture capitalists (and the eventual sell-off of its remaining stake to follow, probably before the end of 2011).
Bancassurance? A joke.
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