Des Moines-Based Principal Financial Seeks $2 Billion From U.S. Treasury

November 20, 2008

  • November 20, 2008 at 3:15 am
    Bernie says:
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    Principal says it would be prudent to borrow the money. This is for people/firms in need, not seed money to grow your business. Wake up America let’s put a stop to this hand-out. You and I are paying for all of this.

  • November 20, 2008 at 5:25 am
    Pete says:
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    Just another hog headed for the trough!

  • November 20, 2008 at 5:26 am
    Sad Stockholder says:
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    What happened to PFG?
    The stock was $70 a year ago; today $10.
    I had no idea they were into subprime mgte business, etc….

  • November 21, 2008 at 7:38 am
    FanofResearch says:
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    They aren’t into the subprime mortgage business. The reason it’s dropped so sharply lately is because a) the market as a whole has taken a huge hit, in particular the financial sector, and b)analysts have been saying PFG has huge exposure to commercial mortgage backed securities (CMBS) which are suspected to be a next trouble zone. That information is incorrect. Here is the real story on PFG’s exposure to CMBS: PFG’s CMBS portfolio is 8 percent of their total invested assets. PFG’s CMBS portfolio is high quality with 99 percent rated as investment grade. PFG’s CMBS portfolio continues to perform well given the current environment. The underlying commercial mortgages that make up these securities continue to perform with less than 1 percent of these loans delinquent.

    Bailout is a misnomer. The purpose of the CPP is to help to boost lending and extension of credit by healthy financial institutions. Insurance companies can play a critical role in getting lending going again as insurers are a primary source of intermediate and long-term lending. The thinking of the company is that it’s simply prudent capital management to consider the CPP as one additional option in a range of options at a time of uncertain market conditions.

    It would behoove you to visit some research sites and visit the company’s own financial information on their website and educate yourself prior to assuming the company’s stock is low because of subprime mortgages.



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