Genworth Financial, which controls the nation’s fourth largest mortgage insurance company, said it failed to meet requirements to receive a large capital infusion under the Treasury Department‘s Troubled Asset Relief Program (TARP).
The revelation came late last week, but on Monday Genworth’s shares were hammered, falling 21% to just over $2.
In a statement, company CEO Michael Frazier said TARP money is only one of Genworth’s options for surviving in the current economic climate.
A spokesman could not be reached for comment at press time. The Richmond, Va.-based Genworth has abandoned plans to buy a small Minnesota depository, which would have served as its conduit to getting TARP money.
In 2008, Genworth posted a net loss of $572 million. For years, it had garnered a reputation for being the most conservative of the nation’s seven MI firms.
