On the heels of Allstate and Ameriprise Financial rejecting the federal government's financial assistance, reports surface that Prudential Financial Inc. will reject federal bailout funds, saying it doesn't need capital from the Treasury Department's Troubled Asset Relief Program.
Prudential plans to sell $1.25 billion of common stock and may use the proceeds to boost capital at its insurance subsidiary or to repay debt, Reuters reports. It said it may also use the funds for "potential strategic initiatives," but did not provide details. The bank's shares fell 1.5 % to $39.31 in early trading on the New York Stock Exchange.
Prudential made its decision "after conducting a thorough review," according to The Wall Street Journal, which reported last month that Prudential would likely decline the request.
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