Recipients are Hartford, Prudential, Allstate, Ameriprise, Lincoln National and Principal Financial Group, he said. The insurers notified yesterday are among hundreds of financial institutions in the pipeline "that are being reviewed and funded as appropriate on a rolling basis," Williams said.Step right up to the trough, kids! There's enough taxpayer money for the insurance companies too!
The money could shore up the life insurance industry, which plays a major role in the economy and has been weakened by the financial crisis. In addition to paying death benefits, life insurers deliver retirement income in the form of annuities. They are big investors in corporate bonds and commercial real estate.
However, the erosion of their investments -- and the possibility of further declines in the value of stocks, bonds and mortgages -- raised concern in some quarters about the outlook for the industry.
"These funds would further fortify our capital resources and provide us with additional financial flexibility during one of the most volatile market climates in our nation's history," Hartford chief executive Ramani Ayer said in a statement.
Hartford said it received preliminary approval for an infusion of $3.4 billion, the full amount it estimated last year that it might obtain.
- If everything's okay with the economy, why do the insurance companies need billions now?
- If the insurers are in such bad financial shape to require unprecedented TARP money from the government then why did it take several months for approval for TARP funds?
- If we're now in the business of giving away taxpayer billions to industries from an emergency bailout fund and have the leisure time to wait several months before doing it, why not offer the same deal to every industry in America?
The problem is you never get anywhere that way, and in the end you're still stuck in the hole Bush left behind.