Fed Allows Allianz SE To Retain Hartford Stake
15 January 2009 - 10:04AM
Dow Jones News
Germany's Allianz SE (AZ) will be able to retain its interest in
The Hartford Financial Services Group, Inc. (HIG) when The Hartford
becomes a savings and loan company, the U.S. Federal Reserve said
Wednesday.
Allianz owns 23.7% of Hartford's voting shares.
Hartford applied to become a savings and loan in November, on
the date of the original deadline for banks to apply for government
capital through the $700 billion Troubled Asset Relief Program. In
applying to become a savings and loan, The Hartford announced plans
to acquire the Florida-based Federal Trust Corp. (FDTR) for $10
million.
Federal Trust Corp. is the parent of one depository institution,
Federal Trust, which controls deposits of $415 million. Federal
Trust Corp. has total consolidated assets of approximately $602
million. Allianz said it has no plans to exercise a controlling
influence over The Hartford and that its investment in the Federal
Trust would be a passive one.
Allianz has total consolidated assets of approximately $1.4
trillion. It provides insurance, banking and asset management
services in more than 70 countries.
The Hartford has total consolidated assets of $312 billion.
-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629;
meena.thiruvengadam@dowjones.com
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