Cold Feet

A Regulator Holds Up the Pru Giant Asian Merger

In the Economist on may 4th it was reported that British insurance Company Prudence PLC, Britain's largest insurer was about to strike a $35.5 billion dollar deal with AIA, the Asian version of AIG, when suddenly the FSA or Financial Services Authority decided that it would be to risky, given the recent economic collapse to create another conglomerate that is, " too big to fail". whether or not this breaks British anti trust laws was also in question. The OECD, endorses this idea. This merger would make Prudence the leading insurer in seven east Asian countries and the head foreign insurer in both India and Asia. This effects the ongoing repurcussions of the economy and public policy towards banks that can't fail.