Treasury mulls insurer aid program: sources

[Newsjock]

Source: Reuters

WASHINGTON (Reuters) - The U.S. Treasury Department is closely studying how it could give relief to insurance companies under a $700 billion financial services rescue package, two sources familiar with the deliberations said on Friday.

The Troubled Asset Relief Program established by Congress early this month has been seen mainly as a way to recapitalize banks and take bad assets off their books to help support creaking credit markets.

Last week, the Treasury tried to squash rumors the government was preparing to give bond and mortgage insurance companies a capital injection, but senior officials are considering how the Treasury might be able to aid state-regulated insurance companies, the sources said.

... A leading financial trade group on Friday sent a letter to the Treasury asking that the government interpret its new TARP powers broadly and leave the door open to aid for insurers, automakers and subsidiaries of foreign banks or companies.

Read more: http://biz.yahoo.com/rb/081024/business_us_financial_usa_insurers.html

[clear eye]

1. If we had a "Troubled PEOPLE Relief Program"

they could all get healthy in one shot. It's the economy, stupid Treasury Dept.. And anything that isn't caused by the economy, but by participating in the Ponzi scheme of CDS's, deserves to implode.

Added on edit:
But they are determined to spend every penny of the $700B as soon as possible even though it's becoming clear that this tack isn't working.