MutualFundWire.com: A Fund Firm's Parent Refuses Bailout Cash

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Friday, May 15, 2009

A Fund Firm's Parent Refuses Bailout Cash

Apparently not everyone wants a federal bailout. Reports have surfaced that the U.S. Treasury has given preliminary approval to sending billions via the Capital Purchase Program to six insurance companies, including RiverSource parent Ameriprise, but Ameriprise wants no part of it.

"While we appreciate Treasury's approval of our application, we have elected not to accept funding," stated Ameriprise chairman and CEO Jim Cracchiolo. "We are confident that our current capital position and access to potential additional funding sources are more than adequate."

Several other fund firms' parents are singing a different tune, though. Hartford chairman and CEO Ramani Ayer revealed that he's "pleased" with Treasury decision to send Hartford $3.4 billion, which would "further fortify" the firm's "capital resources."

For its part, Delaware Investments parent Lincoln may take $2.5 billion through the CPP.

"Access to the Treasury's Capital Purchase Program is a means to further enhance the company's financial flexibility and capital in what has continued to be an unprecedented economic environment," stated Lincoln president and CEO Dennis Glass.

Yet Principal, and Jennison-Dryden parent Prudential, have both officially not decided whether to accept the cash.

"As always, we will continue to consider a range of options to position us to take advantage of opportunities and to meet any further challenges," stated Principal president and CEO Larry Zimpleman. "Our decision about whether to participate in CPP and, if so, at what level, will be based on a review following receipt of all the terms and conditions, both economic and non-economic."

Printed from: MFWire.com/story.asp?s=21575

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