Lloyd's Names say Government will cause 20,000 bankruptcies

[emad]

By Abigail Townsend
Published: 02 October 2005


Lloyd's of London Names are warning of mass bankruptcies over fresh cash calls on them for more than £1m each if the Government succeeds in pushing through new legislation.

The Treasury wants to implement a European Union directive that could remove the right of Names to fight bankruptcy orders against them. This comes as research in the US has revealed that asbestos claims could spiral to more than $560bn (£317bn), with a large chunk of that potentially hitting Names who have already lost millions through Lloyd's.

Sir William Jaffray of campaigning group exlloydsnames. com accused the Government of "jackboot capitalism", adding: "We can easily see 20,000 bankruptcies, and deceased ex-Names' estates being plundered."

The row concerns the asbestos liabilities that affect 36,000 Lloyd's names (20,000 of whom are still alive), and changes the Treasury wants to make to the UK's insolvency laws. It is implementing the Insurers' Reorganisation and Winding-Up Directive, which it introduced via a statutory instrument in the summer. This has now gone to the Lords.

http://news.independent.co.uk/business/news/article316492.ece

[Nihil]

1. Awww ... those unfortunate little rich gamblers ...

:nopity:

They didn't have a problem when their winnings were being funded by
exorbitant premiums but now they have to pay out on their promises ...?

> Sir William Jaffray of campaigning group exlloydsnames. com accused
> the Government of "jackboot capitalism"

"Pot, this is kettle. Are you black? Over."