Forget CDS; Corporations Are Now Taking Out Life Insurance Policies On Employees…” Forget buybacks, just unleash some anthrax to really juice EPS this quarter?”
by Tyler Durden
ZeroHedge.com
06/23/2014
At the heart of the last financial crisis, some compared CDS to buying home insurance on a neighbor’s home and burning it down; it appears the USA has come a long way in the last few years. As NDTV reports, employees at The Orange County Register received a rather unusual request from their employer – Freedom Communications – writing to request workers’ consent to take out life insurance policies on them…. But the beneficiary of each policy would not be the survivors or estate of the insured employee, but the Freedom Communications pension plan. Because such life insurance policies receive generous tax breaks, they are ideal investment vehicles for companies looking to set aside money to pay for pension plans. But in many cases, companies and banks can use the tax-free gains for whatever they choose, “Companies don’t promise regulators they will use it for any specific purpose.” Of course, it is the banks that are the biggest utilizers of this. Forget buybacks, just unleash some anthrax to really juice EPS this quarter?
The Rest…HERE
