TARP to Expand to Life Insurers

The Wall Street Journal reports:

The Treasury Department has decided to extend bailout funds to a number of struggling life-insurance companies…The life-insurance companies will have access to Treasury’s Capital Purchase Program, which injects funds into banks. How much money would now be available to the insurers, and which particular insurers would be beneficiaries, remains unclear. The Treasury says it has about $130 billion remaining in TARP money…It remains to be seen whether extending funds to insurers will spark the kind of populist anger that accompanied assistance to banks and auto makers. Consumers may be relieved to see a boost to some of the companies they count on for their financial security. The action comes with members of the House and Senate away from Washington on a two-week recess, which should initially damp criticism from lawmakers of both parties who are fatigued over the seemingly unending government bailouts…

Published in

Post a comment