The Hartford (Conn.) Financial Services Group Inc. today announced that it has applied to the Office of Thrift Supervision to become a savings and loan holding company.
The Hartford (Conn.) Financial Services Group Inc. today announced that it has applied to the Office of Thrift Supervision to become a savings and loan holding company.
The insurer has also applied to participate in the Department of the Treasury’s Capital Purchase Program, which is part of the Troubled Asset Relief Program.
In conjunction with those moves, The Hartford has also signed an agreement to acquire the Sanford, Fla.-based Federal Trust Corp. for about $10 million, plus an additional undisclosed amount to recapitalize the bank.
Once the acquisition is complete, The Hartford will have met a major requirement to participate in the capital repurchase program.
“We are taking these actions as a strong and well-capitalized financial institution looking for maximum flexibility and stability,” Ramani Ayer, chairman and chief executive of The Hartford, said in a statement. “Securing the capital at the terms available through the Capital Purchase Program could be a prudent course in this market environment and would allow us to further supplement our existing capital resources.”
Under the Treasury’s program, The Hartford believes it would be eligible for a capital purchase between $1.1 billion and $3.4 billion.
But the final amount of capital request will be determined by the Treasury Department.
The insurer’s purchase of the bank is contingent on the Treasury Department’s clearance of The Hartford’s participation in the program, plus approval from FTC’s shareholders and the OTS’ approval of the insurer’s application to become a bank.
