Saturday, March 27, 2010

Insurers give up on investing

Allstate Corp. got out of the stock-picking business by hiring Goldman Sachs Group Inc. to manage a $5 billion equity portfolio out of its overall $100 billion investment pool.


Deutsche Bank AG and BlackRock are the two biggest money managers for insurers, controlling about $200 billion in insurance assets each...

You know, Goldman and Deutsche and all those other Wall Street shops underwrite the IPOs - who ELSE would know more about them. Let's get the same guys who sell us stuff to decide on what stuff to buy us - better yet, let's pay them to help us choose to buy their products.

In all fairness, Blackrock and most of the other money managers probably make sense, and Hartford, and some of the others listed, really are bad at investing.

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