WASHINGTON--The Treasury department is maintaining its stance that insurers seeking federal bailout dollars must do so through a federal regulated entity, leaving those without a banking subsidiary or organization out in the cold.
At a press conference announcing a new federal facility to support lending to consumers and small businesses, Treasury Secretary Henry Paulson said that the department would continue to work only with those financial entities "where there is a federal regulator" as it considers applications for funds from the Troubled Asset Relief Program (TARP).
Mr. Paulson noted that several insurance companies have federal charters, either through owning banking institutions or charters as a bank holding company, and that those who have applied will be considered. "To broadly go to insurance companies," he added, though, "we have not made that decision yet."
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