A news release posted on the website ofThe Hartford says the Hartford Financial Services group has applied to the federal Office of Thrift Supervision to become a savings and loan holding company. The move would make the company eligible for funds under the financial services emergency legislation. And the company also says it has applied to take part in the Treasury Department's "Capital Purchase Program."
Chairman Ramani Ayer is quoted as saying the Hartford is a strong, well capitalized institution -- but is looking for flexibility and stability. In his words, "securing 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.
The company's stock rose on the news.
The Hartford estimates it would be eligible for between $1.1 billion and $3.4 billion, if the move is approved. To become eligible for the savings and loan designation, the company signed a $10 million dollar merger agreement with Florida-based "Federal Trust Bank."
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