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Category: Annuities

Commentator Calls Wentworth IPO ‘Glimpse Into The Types Of Financial Structures That Existed Prior To The Collapse Of Lehman Brothers’

Commentator Calls Wentworth IPO ‘Glimpse Into The Types Of Financial Structures That Existed Prior To The Collapse Of Lehman Brothers’

The initial public offering of JGWPT Holdings, Inc. – parent company of J.G. Wentworth and Peachtree Settlement Funding – was completed last week (as described here). But prior to the IPO, at least one commentator offered some criticism of the financial aspects of the deal. Writer Antoine Gara wrote for thestreet.com that “J.G. Wentworth’s IPO provides a rare glimpse into the types of financial structures that existed prior to the collapse of firms like New Century, Lehman Brothers and Bear…

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JGWPT Completes IPO

JGWPT Completes IPO

JGWPT Holdings, Inc. – parent company of J.G. Wentworth and Peachtree Settlement Funding – completed its $100-million-plus initial public offering last week and began trading on November 8 on the New York Stock Exchange, according to various news reports. Some reports (such as the one here) said that JGWPT had sold 9,750,000 shares at $14 a share – a price that was lower than initially expected – and that the underwriters had an option to buy an additional 1,462,500 shares.

Op-Eds: Handling Cash For Children? Managing Wealth? Try Waiting

Op-Eds: Handling Cash For Children? Managing Wealth? Try Waiting

Don McNay is the founder of the Kentucky Guardianship Administrators, and has been involved in the primary structured settlement market for years.  He frequently authors commentary pieces.  One recent article, “Life Lessons About Creating Wealth”, appeared in the Richmond Register (here) and includes this point: “People who had easy access to cash were the ones most likely to fall off the ‘get rich slowly’ bandwagon.”  He has a few things to say about structured settlement factoring, too.  And in another…

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J.G. Wentworth Proceeds, Not For The First Time, Down IPO Path

J.G. Wentworth Proceeds, Not For The First Time, Down IPO Path

J.G. Wentworth’s holding company, JGWPT Holdings, Inc., is considering an initial public offering in the near future, according to news reports from several sources this week.  The news articles include the following: “J.G. Wentworth Pursues IPO“, in the October 6, 2013 Wall Street Journal; “J.G. Wentworth Operator Files To Raise $200 Million U.S. IPO“, at today’s Bloomberg.com. Before it was owned by JGWPT, J.G. Wentworth considered going public in later 1997, but changed course in early 1998 (as described in…

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Forbes: Review Important Terms, Consult With Professional Adviser Before Considering Pension, Settlement Factoring Transactions

Forbes: Review Important Terms, Consult With Professional Adviser Before Considering Pension, Settlement Factoring Transactions

The SEC and FINRA alert concerning pension factoring and structured settlement factoring prompted a Forbes.com article entitled “Pension Loans Finally Catch Regulators Attention“, available here. According to the article, those considering entering into, or investing in, such deals, should: “Ask for a contract to review upfront before you sign anything.  Then tell the company you want to consult with a tax adviser/CPA, financial planner or lawyer.  See how they react.  If they refuse to show you a contract or be…

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ABC News Invokes Jacob and Esau In Telling Pension Factoring Tale

ABC News Invokes Jacob and Esau In Telling Pension Factoring Tale

Many media outlets have had stories in the past few weeks about the attention given by federal and state officials to pension factoring.  Two of the more recent Secondary Insurance Market Blog posts on the subject, containing links and round-ups of such stories, are here and here. And then there is the ABC News story that appeared under the headline ‘Selling Your Pension For Cash Lump Sum: Pros, Mostly Cons’.  The story begins with a reference to the Old Testament story…

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‘Think Twice Before Selling Pension’ Says CNBC Story

‘Think Twice Before Selling Pension’ Says CNBC Story

A number of recent stories and posts in this blog have described the attention given by federal and state regulators to pension factoring.  The most recent post (which also includes links to the previous six) is available on Secondary Market Blog at this post. And the news stories on pension factoring continue. CNBC ran a story under the headline “Seniors Warned, Think Twice Before Selling Pension.”  The story quotes Lori Schock, direct of investor education at the Seurities and Exchange…

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U.S. Senators Want To Know Whether State Attorneys General Have Uncovered Pension Factoring Abuses

U.S. Senators Want To Know Whether State Attorneys General Have Uncovered Pension Factoring Abuses

State officials in New York and Massachusetts are investigating pension factoring and possible abuses by pension factoring companies, as described here. Have state attorneys general uncovered such abuses? Some U.S. Senators want to know, according to a report (available here) published last week, which said that the chairman and ranking member of the Senate Health, Education, Labor and Pensions Committee sent a letter to the National Association of Attorneys General, requesting documentation and information about those who may have been…

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Wall Street Journal: Senate Investigating Pension Factoring

Wall Street Journal: Senate Investigating Pension Factoring

Today’s Wall Street Journal reports that the U.S. Senate is investigating “a controversial business in which retirees sell pieces of their future pension income to investors for a lump-sum cash payment.” According to the Journal, the Senate Committee on Health, Education, Labor and Pensions “disclosed the probe in a letter Friday to state attorneys general, who were asked by lawmakers for help determining if some of the deals flout federal or state laws.” The story, “Senate Launches Pension-Sale Probe”, is…

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The Problem With Military Pension Factoring? For One, It May Be Illegal

The Problem With Military Pension Factoring? For One, It May Be Illegal

In the past week, considerable attention has been focused on the issue of pension factoring.  Sometimes, the news stories and press releases (which can be found at the links at the prior posts here, here, here and here) also have an emphasis about the problem of military pension factoring. Why is there a problem with military pension factoring? Well, putting aside the policy issues, there is one significant problem or potential problem: such transactions might be against the law. An…

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