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Friday, November 14, 2008

Hartford hopes to become S&L, access TARP

by Calculated Risk on 11/14/2008 04:24:00 PM

From the WSJ: Hartford Aims to Become S&L, Gain Access to Treasury Program

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.

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.
Can a city become a bank too? From the WSJ: TARP City
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.
The mayors envision funds to fulfill their requests coming from the government’s $700 billion Troubled Asset Relief Program.
Philadelphia: a Bank?