First Capital Life Survival Talks Reported: Shearson...

First Capital Life Survival Talks Reported: Shearson Lehman Bros. is negotiating with California insurance regulators to try to head off a potential failure of Los Angeles-based First Capital Life Insurance Co., the New York Times is reporting in today’s editions. Shearson owns 28% of First Capital Life, which has more investments in junk bonds than any insurer still operating, the newspaper said. Shearson also reportedly is the largest seller on Wall Street of First Capital’s policies. Shearson Chairman Howard Clark Jr. will meet today with Insurance Commissioner John Garamendi about First Capital, the report said.