Genworth struggles continue
- November 12, 2008
Genworth Financial Inc.’s troubles continued Tuesday after one of its units revealed it was no longer eligible to participate in a federal program to sell commercial paper, a source of short-term capital for companies.
The Henrico County-based insurer’s stock plunged more than 50 percent Tuesday, closing at $1.24. The company’s stock has declined during recent market turmoil and mortgage crisis. In September, the stock was trading for as much as $16.
Moody’s Investors Service and Standard and Poor’s both downgraded the company’s credit rating, which made it unable to participate in the Federal Reserve’s Commercial Paper Funding Facility, which was created to help infuse cash to companies during the economic downturn. (Richmond Times-Dispatch)