The blood that keeps on bleeding. Life Insurance Companies to get TARP funds:
The U.S. Treasury said on Wednesday some life insurers have met requirements for government capital investments under an existing rescue plan, clarifying that it is not launching a new bailout for the sector.
"There are a number of life insurers that have met requirements for the Capital Purchase Program because of their bank holding company status," said Treasury spokesman Andrew Williams. "These are among the hundreds of financial institutions in the CPP pipeline that will be reviewed and funded as appropriate on a rolling basis."
The statement was made in response to a Wall Street Journal story published late on Tuesday saying the Treasury would extend its $700 billion financial bailout program to certain life insurers and would make an announcement in coming days.
The original Wall Street Journal story is here and they report it is very unclear which life insurance companies will get the money or the details.
What ever happened to the concept of investment
losses? Those insurance companies that are seeking help screwed up. There are still AAA-rated insurance companies out there.
Investment losses are a very good learning experience, believe me I know. It is time for bondholders and shareholders to experience losses.
RebelCapitalist.com - Financial Information for the Rest of Us.
Treasury doesn't understand the difference between
systemic risk and investment risk.
RebelCapitalist.com - Financial Information for the Rest of Us.
Now I would not normally ask this
but given how screwy things are these days, are the policies themselves safeguarded if one of these firms goes belly up?
good question
I'm assuming they could transfer the policies to some other firm since they should be solid, but I honestly don't know.
For the record
my question was of a rhetorical nature. But yes, you are right, it would get transferred. The reason I asked, was I'm hearing (on Bloomberg televions) UAW pensions may be getting slashed as much as a third. Now if they're willing to do that to pensions, what about when say an insurance company takes TARP like they're begging to do? Don't be surprised. I hope it doesn't happen, I'll be pissed as I've been paying for years and it would suck if my family gets a fraction of what I was guaranteed. BTW, for those interested about what happens, an FAQ put up in light of the AIG collapse in North Carolina a while backed answered it.