Insurance Companies Qualify for Bailout Money

The Treasury Department says that some life insurance companies have met the requirements for government capital investments under an existing rescue plan, and their applications for funds are now being considered.

Treasury says there are a number of life insurers that have met requirements for the Capital Purchase Program because of their bank holding company status. They are among the hundreds of institutions in the CPP pipelines to be reviewed and funded as they are approved. This capital investment in insurance companies does not constitute a new rescue program for the insurance sector, according to a Treasury department statement.

Treasury's statement caused a downward shift in stocks, including the large insurance companies that were viewed as benefiting the most from a widened bailout.

In recent months, some insurance companies have received approval to acquire banks, paving the way for them to participate in the Capital Purchase Program, which the Treasury has estimated will top out at $218 billion. This week's tally shows that the program had $198.5 billion invested, leaving $19.5 billion in available funds, according to Treasury documents. A Treasury official says so far only a small number of life insurers have met the qualifications for the program.


About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.




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