Genworth not buying Minnesota thrift
- April 10, 2009
Genworth Financial will not be buying a Minnesota thrift after all.
The Richmond-based insurance and financial services company announced last year that it planned to acquire InterBank FSB of Maple Grove, Minn., as a way to tap into the Treasury Department’s $700 billion rescue program for financial institutions.
The Treasury Department, however, told Genworth yesterday that a deadline set for Genworth’s approval as a savings and loan holding company had passed and would not be extended. Regulators at the federal Office of Thrift Supervision had not completed their review of Genworth’s application before the deadline.
The InterBank deal was contingent upon Genworth getting approval to participate in the federal funds program. Genworth says it will not complete the acquisition.
In a statement explaining Genworth’s decision, CEO Michael D. Fraizer said the purchase of InterBank was one of several steps the company had considered in efforts to bolster its capital. He said the company has made significant progress in recent months in enhancing capital levels. Genworth ended 2008 with $2 billion more than required to meet targeted ratings and regulatory requirements.