For Hartford Financial Services Group Inc. (NYSE:HIG), the words Troubled Asset Relief Program are a big part of its life right now.
The insurer announced Friday plans to sell up to $750 million in stock as the company revealed it's eligible for as much as $3.4 billion in TARP funds. (The Deal Pipeline subscribers can read the full story here.) The news is nothing new as word of Hartford's TARP application came out two weeks ago.
Hartford's official announcement follows the U.S. government's approval of a list of banks to repay $68 billion in borrowed funds that should replenish the TARP account. One of those firms, Goldman Sachs Group Inc. (NYSE:GS), has been hired by Hartford to be the agent to arrange its stock offering.
One other Hartford connection of sorts to TARP is the departure of Quincy Krosby, who was chief investment strategist for the last five years, but jumped to rival Prudential Financial Inc. (NYSE:PRU). Krosby was part of the team that pushed for Hartford's foray into investments in subprime debt, which partly contributed to the insurer's $2.8 billion net loss last year, ultimately putting the company in the position where it is now, needing TARP money. - Gerald Magpily
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