Uh-Oh: Foreign Insurer To Pull The Become-An-S&L Trick

Hartford Financial (HIG), Genworth (GNW) and a few others have figured out that they can buy a small bank, conver to an S&L, apply to the TARP and profit. It’s a clever move, and it’ll probably work, but can a foreign firm pull off the same stunt?

Dutch insurer Aegon (AEG) says it intends to buy a small thrift and apply for $1 billion in TARP money. To be clear, Aegon does own Transamerica, and derives most of its profit in the US, but still, it’s foreign. Amusingly, it says its liquidity is fine, and that it’s only seeking the minimum from the government.

See it’s just business. They’re not out to abuse the system or anything like that. But if there’s $1 billion dangling out there, they’d be fools not to go for it.

See Also:
Hartford Financial’s Brilliant Turnaround Plan

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