TARP for life insurers - report
The Treasury Department may allow life insurers that are bank holding companies or thrifts to apply for TARP funds.
NEW YORK (CNNMoney.com) -- The Treasury Department could allow certain life insurers apply for funds from its Troubled Asset Relief Program, according to people familiar with the matter, The Wall Street Journal reported in its online edition late Tuesday.
Investors have been increasingly worried about the health of life insurers, which have been hit hard by worries about capital requirements and growing losses.
According to the Journal, Treasury could announce within the next few days that life insurance firms that are bank holding companies or thrifts will be eligible for TARP. While life insurers that are bank holding companies have already been eligible for TARP funds, Treasury has yet to give applications the go-ahead.
Prudential Financial Inc. (PRU, Fortune 500), Hartford Financial Services Group Inc. (HIG, Fortune 500) and Lincoln National Corp. (LNC, Fortune 500) are said to have applied but the Journal's sources said Treasury has not yet decided which applications will be approved.