DOW JONES NEWSWIRES
Prudential Financial Inc. (PRU) became the latest life insurer
to reject federal bailout funds, saying in a one-sentence statement
early Monday it doesn't need capital from the Treasury Department's
Troubled Asset Relief Program.
Its stock fell 2.3% premarket to $39, but are up 32% this year
and have nearly quadrupled since bottoming out in March.
A number of companies in November sought federal help as they
were hit by billions of dollars in investment losses and worries
about their capital levels. Prudential has lost money in the past
three quarters on woes in its investment portfolio.
In the past month especially, a wide spectrum of companies have
been able to raise money directly from investors who have shown to
be less risk averse than they had been.
Prudential made its decision "after conducting a thorough
review." The Wall Street Journal reported last month, after the
Treasury gave its belated blessing to allow life insurers access to
TARP, that Prudential would likely decline the request.
Ameriprise Financial Inc. (AMP), one of six life insurers which
was preliminarily approved in May, said it wouldn't participate.
Allstate Corp. (ALL) also has declined to accept funds.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com