The Treasury is expected to expand the TARP within the next few days to include life insurance companies. Only life insurance companies that own banks will qualify, and the assistance will be provided through the Capital Purchase Program. It is unclear how much money will be made available for life insurers, the Treasury reports that $130 billion in TARP funds remain. Any life insurance company participating in this program will be subject to the executive compensation restrictions that apply to all TARP recipients.
Alert April 14, 2009