Now that the banks' stress tests are done, it's on to the insurance industry. The Treasury Department said today it will give TARP funds to the nation's biggest life insurers, the Washington Post reports. Hartford Financial has been given preliminary approval to receive $3.4 billion, and as-yet unspecified amounts will go to Prudential, Allstate, Ameriprise, Lincoln National, and Principal Financial Group.
This marks the first time TARP funds will go outside the banking sector. The insurance industry plays a major role in the economy, the Post notes, partly through its investments in corporate bonds and commercial real estate. By accepting the TARP funds, the insurers will have to agree to restrictions such as caps on executive pay.