Genworth shares tumble after TARP shutout
The Richmond, Va.-based insurer’s shares fell as low as $1.92 in this morning’s trading, as the impact of Genworth’s ineligibility for help through the Department of the Treasury’s Troubled Asset Relief Program took hold.
Shares of Genworth Financial Inc. tumbled this morning, following news of the carrier’s failure to qualify for federal aid.
The Richmond, Va.-based insurer’s shares fell as low as $1.92 in this morning’s trading, as the impact of Genworth’s ineligibility for help through the Department of the Treasury’s Troubled Asset Relief Program took hold.
Last week, Genworth’s stock price climbed 36.14%, soaring as high as $2.75 at the market’s close Thursday on news of the federal government’s announcement that life carriers would be eligible for aid through the Capital Purchase Program, which is part of TARP.
The market was closed Friday in observance of Good Friday.
Later on Thursday, however, Genworth said that the Office of Thrift Supervision hadn’t completed its review of the carrier’s application to become a savings and loan holding company in time to meet the TARP deadline.
As a result, Genworth won’t complete its proposed acquisition of InterBank FSB of Maple Grove, Minn., and therefore won’t be eligible for TARP funds.
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