Hartford Financial Services Inc. says it has applied for permission to become a savings and loan holding company, clearing the way for it to participate in the U.S. Treasury Department’s Capital Purchase Program.
Hartford Financial, Hartford, also has agreed to pay $10 million to acquire Federal Trust Corp., Sanford, Fla., the parent of Federal Trust Bank, a federally chartered savings bank.
Completing the Federal Trust deal will help Hartford satisfy a CPP eligibility requirement, Hartford says.
Hartford estimates that it should be eligible for a capital purchase of between $1.1 billion and $3.4 billion under existing Treasury guidelines.
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The final amount of the capital request will be determined following approval by the Treasury, Hartford says.