D'Amato's bill would allow an FSHC
to own a bank, securities, insurance or any other type of commercial firm and would create a National Financial Services Committee to oversee the holding company, while the subsidiaries would be regulated by function.
Even in the case of firms that paid for the entire cost of FSHC
training and were willing to pay increased wages to trained workers to minimize quits, one would not expect the firms to pay displaced workers from other firms (who possess unusable FSHC
) the same amount paid to recalled trained workers (who possess usable FSHC
Under IHC's contract with SoftNet, upon closing of SoftNet's purchase of FSHC, IHC has agreed to make a cash tender offer at $3.
FSHC is the holding company for First Standard Security Insurance Company ("First Standard") and two managing general underwriters ("MGUs").
The acquisition of FSHC allows SoftNet to use its cash to acquire a business which has a solid track record of growth and profitability.
Roy Thung commented: "We are pleased that, upon consummation, the sale of FSHC will provide IHC with additional cash liquidity while allowing it to maintain a substantial equity interest in SoftNet and resulting equity income from such ownership.
A separate press release is being issued that describes the plan, which will expire upon consummation of the acquisition of FSHC.
This indicates that stock return volatility increased significantly for A&H and P&C insurers following the GLBA (1999), at least partially, due to the higher level of competition from FSHCs.
Moreover, a number of FSHCs started divesting themselves of their insurance components after 2001.