A financial industry source close to the TARP process says that the Treasury is again considering federal assistance for life insurance companies.
A separate source, in the insurance industry, said about a half-dozen life insurers with federally-chartered bank subsidiaries have applied for a total of about $20 billion in TARP assistance.
Under the Bush Administration, Treasury had considered providing TARP funds to life insurance companies, but the review was interrupted by the auto industry rescue and the transition to the Obama Administration.
Now the assistance is under review again, by the Obama Treasury team, as the life insurance industry faces increasing financial troubles.
The financial industry source close to the TARP process suggested the new review is in its preliminary stages and that some assistance for life insurers cannot be ruled out.
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