FED APPROVES PROTECTIVE LIFE AS BANK HOLDING

The US Federal Reserve has approved Protective Life as a federally chartered bank holding, qualifying the Alabama-based life assurer to access the Fed’s emergency loan programme and to apply for funds under the Treasury Department’s $700bn financial-services bailout. Protective Life, with $41.1bn in assets, agreed to acquire Florida-based bank Bonifay Holding to get the banking charter. Protective’s green light from the Fed comes a week after the US Office of Thrift Supervision approved requests by p/c and life group Hartford Financial Services and life assurer Lincoln National to be classified as thrift holdings and to qualify for federal bailout funding.