The Hartford closes deal to buy Federal Trust Corp.
The Hartford (Conn.) Financial Services Group Inc. yesterday said that it has closed its deal to purchase Federal Trust Corp. for $10 million.
The Hartford (Conn.) Financial Services Group Inc. yesterday said that it has closed its deal to purchase Federal Trust Corp. for $10 million.
Closure of the acquisition marks the final step in the insurer’s quest to obtain federal aid through the Department of the Treasury’s Capital Purchase Program, a part of the Troubled Asset Relief Program.
Seeking federal aid, The Harford put the purchase into motion seven months ago when the Treasury Department began offering lifelines to troubled institutions.
Insurers that hoped to participate needed to have a savings and loan holding company or thrift to become eligible for aid.
The Hartford’s bid for help has been fruitful, with the insurer receiving approval for $3.4 billion in aid.
“The acquisition of Federal Trust represents the last significant step toward the closing of our investment agreement with Treasury,” Ramani Ayer, chairman and chief executive of The Hartford, said in a statement.
Federal Trust is a Sanford, Fla.-based thrift holding company and the parent of Federal Trust Bank.
The bank will continue to operate under its name, according to a statement from The Hartford.
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