Why did Lincoln Financial Group decide to participate in the U.S. Treasurys Capital Purchase Program (CPP)?
The preferred stock issued under the Capital Purchase Program (CPP) is an investment in Lincoln Financial by the U.S. Treasury and we view it as flexible capital for Lincoln Financial. The amount of preferred stock issued under CPP is at a manageable level, representing approximately 6 percent of our total capitalization, and was sized for ease of exit both in terms of timing as well as funding considerations for the eventual repayment of the CPP proceeds. Given the continued market volatility, it makes sense to execute on a capital plan that prudently increases our insurance company capital. Although there have been recent signs of improved investor and consumer confidence, we expect the markets to continue to be challenging for some time to come.
Related Questions
- How does a Qualifying Financial Institution (QFI) know if it is eligible to participate in the Treasury Departments Capital Purchase Program (CPP)?
- Why did Lincoln Financial Group decide to participate in the U.S. Treasurys Capital Purchase Program (CPP)?
- How will Lincoln Financials participation in the Capital Purchase Program affect policyowners?