Treasury to Sell Positions in Insurers

The U.S. Department of the Treasury says it plans to sell warrant positions in two life insurers over the next several weeks.

The moves will dispose of Treasury’s remaining holdings under federal bailout programs in the Hartford Financial Services Group, Inc., Hartford, and Lincoln National Corp., Radnor, Pa.

Each insurer previously had fully repurchased Treasury’s stock investments in the firms.

The Treasury received the warrants in consideration for investments made under its Capital Purchase Program (CPP) and Targeted Investment Program (TIP).

The CPP is a preferred stock and equity warrant purchase program conducted by the Treasury’s Office of Financial Stability as part of the government’s Troubled Assets Relief Program (TARP). The Treasury created TIP to steady the financial system by making investments in critical institutions.