Some Insurer Banks Turn Down Bailout

National Underwriter News
December 12, 2008


A number of banks owned by insurance companies have opted out of 2 federal programs developed in response to the debt crisis.

The insurer-owned banks are included in lists published by the Federal Deposit Insurance Corp. of institutions that have opted out of the relief programs.

One of the programs backs banks' unsecured debt, and the other can help them meet payroll and pay vendors.

Among insurer-owned banks on the opt-out list for the debt guarantee program were ING Group's ING Bank F.S.B., Wilmington, Del.; and Mutual of Omaha Bank, Omaha.

The transaction account guarantee opt-out list includes Allstate Bank, Vernon Hill, Ill.; State Farm Bank F.S.B., Bloomington, Ill.; and Nationwide Bank, Columbus, Ohio.

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