Insurance companies MetLife Inc, Prudential Financial Inc., and New York Life Insurance Co. are all exploring the idea of selling stocks to the Federal Government, according to a Wall Street Journal Report, citing people familiar with the matter.
Not only insurers, but auto makers, state governments and transit agencies are all making a run at the U.S. government's $700 billion rescue plan, the report says, calling into question whether the amount which once seemed staggering is now enough.
Figures released from the Federal Reserve showed American International Group (AIG) has borrowed $90.3 billion from the Federal government as of last Wednesday. Just last Friday, Regions Financial Corp said the U.S. government will buy $3.5 billion worth of stock in the bank.
By Megan Ainscow
©CEP News Ltd. 2008