by Bill McBride on 11/14/2008 04:24:00 PM
Friday, November 14, 2008
Struggling insurer Hartford Financial Services Group Inc. announced it has applied to convert to savings-and-loan status and said it will buy Federal Trust Corp. for $10 million.Can a city become a bank too? From the WSJ: TARP City
The move, which also involves Hartford applying to be part of the Treasury Department's $250 billion capital-injection effort, marks the company's biggest attempt to stem the crisis of confidence afflicting it and other life insurers.
Hartford estimated it would be eligible for a $1.1 billion to $3.4 billion investment from Treasury if its application is accepted.
In a letter to Treasury Secretary Henry Paulson Friday, the mayors of Philadelphia, Phoenix and Atlanta asked for the creation of a $50 billion fund to spur infrastructure investments as well as for loans to cover unfunded pension liabilities and to address cash flow crunches amidst tight credit markets.Philadelphia: a Bank?
The mayors envision funds to fulfill their requests coming from the government’s $700 billion Troubled Asset Relief Program.
Posted by Bill McBride on 11/14/2008 04:24:00 PM