Genworth Thrift Acquisition Still in Limbo

Despite missing a key deadline, an effort by Richmond, Va.-based Genworth Financial Inc. to acquire an ailing thrift and access bailout funds is still alive.

Last month, Genworth announced it would acquire Minnesota-based Inter Savings Bank in order to participate in the Treasury Department's Troubled Asset Relief Program (TARP).

Genworth hoped to be approved as a bank holding company by the Office of Thrift Supervision prior to Jan. 15 in order to meet a deadline set by the Treasury Department for companies wishing to receive TARP money.

Yet, Al Orendorff, a Genworth spokesman, told American Banker that no decision has been made on whether the missed deadline would disqualify the company.

Likewise, William Ruberry, a spokesman for the Office of Thrift Supervision, told American Banker that the agency is still reviewing Genworth's application, and that a request was made to Treasury to extend the Jan. 15 deadline.

Other insurance companies that recently acquired thrifts, including Hartford, Conn.-based Hartford Financial Service Group and Radnor, Penn.-based Lincoln Financial Corp., were approved as thrifts earlier this month.