Principal Financial Group To Join Feeding Frenzy At The Bailout Trough
- The Principal Wants A Cool $2 Billion Dollars -
- Denies It's A Bailout... -
Principal Financial Group Inc. (PFG) has applied to participate in the Treasury Department's Capital Purchase Program and could receive up to $2 billion in exchange for preferred shares and warrants to the Treasury.
Shares jumped 4.8% to $15 in after-hours trading.
Principal said it applied as a savings and loan holding company subject to oversight of the Office of Thrift Supervision. The money would support and capitalize the company's federal savings bank subsidiary, Principal Bank, and support growth needs of its operating units.
Principal said "the company believes it is prudent" to seek the funds "as another option to build on its position of financial strength, by adding to its capital cushion in a time of volatile and uncertain market conditions."