Happy consumers and a prospering economy make for a happy and prospering insurance industry. NAVA, the Association for Insured Retirement Solutions, believes that there is a new sense of hope and optimism for the nation’s economy, as seen by this week’s developments with the long-awaited results from the Supervisory Capital Assessment Program (SCAP), lower-than-expected jobless claims, a seven-month high in consumer confidence, rising productivity and Fed Chairman Ben Bernanke’s cautiously optimistic assessment of the economy, in which he says, “The results released today should provide considerable comfort to investors and the public.”

The exercise, conducted by the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., was conducted so that supervisors could determine the capital buffers sufficient for the 19 BHCs to withstand losses and sustain lending even if the economic downturn is more severe than is currently anticipated. In a detailed summary of the results of the SCAP, the supervisors identified the potential losses, resources available to absorb losses, and resulting capital buffer needed for the 19 participating BHCs.

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