rs. So far, estimated net aggregate insured losses, from 55 leading insurers and reinsurers, are $19.2 billion. This figure is expected to continue rising. Rob Jones, a director in Standard & Poor's Financial Services group in London, has said that losses would have to exceed $50 billion before the entire industry were in trouble, and it is fast approaching that line. Even in Asia's emerging economies, insurance companies are likely to feel the impact of the attack. Although Asian companies are more likely to be affected by exposure to investment volatility more than by exposure to claims, the ratings on subsidiaries of foreign insurers may be affected in the event that their parent companies incur major claims as a result of the attacks on U.S. targets.Alan Greenspan, chairman of the U.S. central bank, expects some difficult times ahead for companies and workers but remains optimistic about the long-term strength of the U.S. economy. Testifying before the House of Representatives Banking Committee September 20, Greenspan said that the September 11 terrorist attacks on the World Trade Center and Pentagon caused considerable uncertainty that resulted in business cutting back or delaying spending plans. "Indeed, much economic activity ground to a halt last week," he said. Banks and investment banks have mostly weathered the initial phase of the dislocations caused by the attacks on the World Trade Center. The payments system continued to work even in the immediate aftermath of the disaster, and financial markets are now all open for business once again. Financial analysts plan to focus on the medium to longer-term implications. For example, credit exposure to those industries that may have been most affected by the disaster will add to the already mounting credit problems that some banks may have. Investment banks could be especially vulnerable to the business interruption and potential impact of a further slowdown in already weak capital...
