Presidential Life Corp

The Securities and Exchange Commission on Tuesday charged Presidential Life Corp. with "materially overstating" its earnings by failing to account for major declines in value of its junk bond portfolio. The agency's action against Presidential, parent of Nyack, N.Y.-based Presidential Life Insurance Co., is the first charging a financial institution with improperly accounting for investments in high-yield junk bonds.

The Securities and Exchange Commission on Tuesday charged Presidential Life Corp. with "materially overstating" its earnings by failing to account for major declines in value of its junk bond portfolio. The agency's action against Presidential, parent of Nyack, N.Y.-based Presidential Life Insurance Co., is the first charging a financial institution with improperly accounting for investments in high-yield junk bonds.