WASHINGTON--Treasury Secretary Timothy Geithner is expected to announce that 12 insurance companies with life operations have been approved for government assistance under the Capital Purchase Program (CPP) component of the Trouble Asset Relief Program approved by Congress last year.

Mr. Geithner reportedly will disclose the aid to life insurers Tuesday while "outlining" a comprehensive plan designed to restore stability to the financial system.

Two other proposals said to be under consideration by the Obama administration are CPP aid to the troubled monoline or bond insurers, and whether to ask Congress for legislative authority that would allow the Federal Deposit Insurance Corporation to oversee troubled financial services companies, whether they are banks or not.

Representatives of various life insurance industry trade groups said they had heard "rumors" of the proposals to aid insurers but were not in a position to comment. Spokesmen for the monoline insurers declined comment.

The Treasury Department, through a spokesman, also declined comment on aid to insurers and would only say that in his speech, Secretary Geithner will discuss the Obama administration's strategy to strengthen our economy by getting credit flowing again to families and businesses, while imposing new measures and conditions to strengthen accountability, oversight and transparency in how taxpayer dollars are spent.

"Secretary Geithner will explain how the financial stability plan will be critical in supporting an effective and lasting economic recovery," the statement said.

Secretary Geithner will testify Tuesday on "Oversight of the Financial Rescue Program: A New Plan for the TARP," before the Senate Banking Committee.

Special Reports /

Treasury May Plan To Aid 12 Life Insurers, Bond Carriers Also

Related Stories

Recommended For You