Less than a week after being approved for bailout funding, Allstate Corp. has decided not to participate in the program. Meanwhile, a major brokerage firm announced that it would withdraw its application for aid.
Allstate was one of six insurance companies to attempt to qualify for money under the Troubled Asset Relief Program by leveraging existing bank holdings or attempting to buy savings and loan institutions.
Allstate Bank, the firm's retail financial services arm, received its original charter in 1998.
Thomas J. Wilson, Allstate's chief executive officer, said the company decided that it was sufficiently capitalized to turn down the possibility of received billions of dollars in bailout aid.
"We applaud the administration's decision to include insurers in the U.S. Treasury's programs," Wilson said in a statement. "Given Allstate's strong capital and liquidity positions, however, we will not participate in this program."
The insurance companies received approval Friday on their preliminary applications. Ameriprise Financial Inc. announced immediately afterward that it was no longer interested, and Prudential Financial Inc. is widely expected to follow suit.
The other approved firms are The Hartford Financial Services Group Inc., Lincoln National Corp., and Principal Financial Group.
In related news, Raymond James Financial Inc. said it was withdrawing its application for TARP funding. In a statement, the Florida-based brokerage said it believed it had "adequate internal funds" and could survive without government aid.
Since the bailout program began, a number of financial institutions have changed their minds about participating, citing concerns about restrictions on executive pay, dividends, and other uses of cash.
Allstate was one of six insurance companies to attempt to qualify for money under the Troubled Asset Relief Program by leveraging existing bank holdings or attempting to buy savings and loan institutions.
Allstate Bank, the firm's retail financial services arm, received its original charter in 1998.
Thomas J. Wilson, Allstate's chief executive officer, said the company decided that it was sufficiently capitalized to turn down the possibility of received billions of dollars in bailout aid.
"We applaud the administration's decision to include insurers in the U.S. Treasury's programs," Wilson said in a statement. "Given Allstate's strong capital and liquidity positions, however, we will not participate in this program."
The insurance companies received approval Friday on their preliminary applications. Ameriprise Financial Inc. announced immediately afterward that it was no longer interested, and Prudential Financial Inc. is widely expected to follow suit.
The other approved firms are The Hartford Financial Services Group Inc., Lincoln National Corp., and Principal Financial Group.
In related news, Raymond James Financial Inc. said it was withdrawing its application for TARP funding. In a statement, the Florida-based brokerage said it believed it had "adequate internal funds" and could survive without government aid.
Since the bailout program began, a number of financial institutions have changed their minds about participating, citing concerns about restrictions on executive pay, dividends, and other uses of cash.
published May 20, 2009, 0 Comments
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