Shrewd if not downright slimey on HIG’s part to finesse some taxpayer $$. Seems like deceit and fraud from my perspective – buy a little bank to get billions in federal (our) dollars then dump it once they have OUR $ safely secured? Stupid federal TARP program (our $) was outwitted by HIG shysters.
What do you think Hartford did with our $ during the period they borrowed it until they paid it back? Do you think they used it to shore up their insurance ops, maybe earn some float? What do you think their INTENT was when they bought the bank to secure those funds? Do you think they knew all along the bank acquisition was for the specific purpose of acquiring TARP funds, knowing they would then divest the bank?
Oh Please! At best they exploited a taxpayer funded program to line their own pockets. Paying $10 million to receive $3.4 billion??? It doesn’t matter if the money was paid back, its the principle. And now they’ll write off the “loss” that they’ve incurred in the sale.
HIG did it all in a legal manner, yes, of course. Here we get into the spirit of the law Vs. the letter of the law.
I strongly think that, if it were contemplated that insurers would buy tiny little less-than-a-dozen-branch banks in order to get TARP funds, then that loophole would have been written out before TARP was approved. So while they followed the letter of the law, it would be a serious stretch to assume that HIG followed the intent or spirit of the law.
Nobody should confuse AIG with HIG.
AIG was in financial trouble for its NON-insurance operations and their dealings in CDS. AIG’s insurance operations weren’t necessarily well-run, but they weren’t the cause of the problems at AIG.
HIG, on the other hand, WAS in financial trouble for its insurance operations, unlike AIG. HIG’s trouble was on the Life side, and involved their need to hedge their GMWB products. The situation was so dire that asset sales to raise capital were out of the question (i.e. implied negative valuations on the Life ops).
Finding a way to get access to TARP was their only option to preserve the company, and it worked. It was, quite frankly, the single best strategic move or decision ever made by that group of HIG management.
Not a HIG-hater here, just calling it like I see it. It was nasty and ugly and a comedy of errors, and it would have been better for all concerned if the company’s management had just executed better strategic judgment well prior to the crisis.
Disclaimer: my personal opinions are expressed here; they are not necessarily indicative of anyone else’s opinions, or indicative of the opinions of any current, former, or future employer.
Hartford did it legally, if you feel it was done w/out morals, that is not the problem of the insurer. They were enabled by the government.
AIG and the car companies took advantage of much more money that HIG did, and most still have not paid it back in full.
Again, get over it! It was approved, it was done, it’s been paid back. A company that has given back to the community for over 200 years was kept afloat by money that was readily available.
Shrewd if not downright slimey on HIG’s part to finesse some taxpayer $$. Seems like deceit and fraud from my perspective – buy a little bank to get billions in federal (our) dollars then dump it once they have OUR $ safely secured? Stupid federal TARP program (our $) was outwitted by HIG shysters.
How many times is Hartford going to get funded?
Hartford didn’t dump the bank once they secured Tarp money, maybe you need to go back and read the article.
Hartford has fully repaid the tax payers, and is now divesting ownership of the bank. Hartford repaid the gov’t over a year ago.
Do your homework before posting something that you know nothing about!
What do you think Hartford did with our $ during the period they borrowed it until they paid it back? Do you think they used it to shore up their insurance ops, maybe earn some float? What do you think their INTENT was when they bought the bank to secure those funds? Do you think they knew all along the bank acquisition was for the specific purpose of acquiring TARP funds, knowing they would then divest the bank?
Also, I think the headline speaks for itself – with a capital, underscored “USED”, (my emphasis)
Yes that is why they bought the bank! The only legal way to get the TARP funds was to purchase the bank.
Hartford did everything in an ethical, legal manner. Again, GO DO YOUR HOMEWORK!
That was the stipulation with obtaining TARP funds.
You are speaking out of the wrong end of your body.
Hartford paid it back fully and quickly, and is now a fairly strong company.
Oh Please! At best they exploited a taxpayer funded program to line their own pockets. Paying $10 million to receive $3.4 billion??? It doesn’t matter if the money was paid back, its the principle. And now they’ll write off the “loss” that they’ve incurred in the sale.
Hartford was funded once. Don’t get it confused with AIG
HIG did it all in a legal manner, yes, of course. Here we get into the spirit of the law Vs. the letter of the law.
I strongly think that, if it were contemplated that insurers would buy tiny little less-than-a-dozen-branch banks in order to get TARP funds, then that loophole would have been written out before TARP was approved. So while they followed the letter of the law, it would be a serious stretch to assume that HIG followed the intent or spirit of the law.
Nobody should confuse AIG with HIG.
AIG was in financial trouble for its NON-insurance operations and their dealings in CDS. AIG’s insurance operations weren’t necessarily well-run, but they weren’t the cause of the problems at AIG.
HIG, on the other hand, WAS in financial trouble for its insurance operations, unlike AIG. HIG’s trouble was on the Life side, and involved their need to hedge their GMWB products. The situation was so dire that asset sales to raise capital were out of the question (i.e. implied negative valuations on the Life ops).
Finding a way to get access to TARP was their only option to preserve the company, and it worked. It was, quite frankly, the single best strategic move or decision ever made by that group of HIG management.
Not a HIG-hater here, just calling it like I see it. It was nasty and ugly and a comedy of errors, and it would have been better for all concerned if the company’s management had just executed better strategic judgment well prior to the crisis.
Disclaimer: my personal opinions are expressed here; they are not necessarily indicative of anyone else’s opinions, or indicative of the opinions of any current, former, or future employer.
Everyone needs to get over it!
Hartford did it legally, if you feel it was done w/out morals, that is not the problem of the insurer. They were enabled by the government.
AIG and the car companies took advantage of much more money that HIG did, and most still have not paid it back in full.
Again, get over it! It was approved, it was done, it’s been paid back. A company that has given back to the community for over 200 years was kept afloat by money that was readily available.
Consider this:
Just a year back, HIG was “prudently” considering repaying back the TARP money, even after making a profit: http://www.hartfordbusiness.com/news11949.html
But, now a year over, HIG has reportedly repaid ALL of the $3.4B TARP bailout back to the government. Let me repeat, thats $3.4 Billion!!!
WOW, Am I dreaming this or am I the Regular Joe :)