US govt to buy stake in insurance companies

Following its purchase of shares of leading US banks, the US government is considering buying equity stakes in insurance companies using the $ 700 bn rescue package approved by Congress, the Wall Street Journal reported today.  

The newspaper said the insurance firms are offering their shares themselves, feeling they could benefit from the government's money pool amid financial turmoil.  

Citing people familiar with the matter, The Journal said MetLife Inc., Prudential Financial Inc., and New York Life Insurance Co. were interested in exploring a sale of equity stakes to the government.  
Yesterday, PNC Financial Services Group Inc., said The Treasury Department would buy $ 7.7 bn worth of preferred stock and warrants.  
Last month, the US government saved from bankruptcy American International Group (AIG), a giant insurance company.