Hartford Financial Services Group Inc., Hartford, Conn., reports that it has accepted all of the $3.4 billion approved from the federal Troubled Asset Relief Program. The funds represent a loan that includes a 5% annual dividend and provides the U.S. Treasury Department with the option to purchase as much as $510 million in company stock at $9.79 a share. Within the past few weeks, the Hartford announced a plan to sell $750 million in stock to raise further capital.
"Applying for participation in the [Capital Purchase Program] CPP was a prudent step for The Hartford, particularly given the continued economic uncertainty," said Ramani Ayer, Hartford's chairman and CEO, in a statement when Hartford's approval was announced. "These funds would further fortify our capital resources, and provide us with additional financial flexibility during one of the most volatile market climates in our nation's history," BestWire quoted Ayer as saying.
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