Truist and Fifth Third pause Delaware Life products amid probe

Regulation
โดย Investing.com·US·Read original
Summary · why it matters

Truist Financial and Fifth Third Bancorp have paused distribution of products tied to billionaire Mark Walter's Delaware Life Insurance as a U.S. federal investigation intensifies, Bloomberg reported Friday. The probe has also delayed a planned $10 billion investment in Walter's TWG Global led by Abu Dhabi sovereign wealth fund Mubadala Investment Co. The Securities and Exchange Commission and Department of Justice are examining Walter's insurers and Guggenheim Partners, focusing on more than $20 billion of loans on the insurers' balance sheets that should have been classified as affiliated but were not until this year. Truist and Fifth Third suspended their roles as distribution channels for Delaware Life amid concerns about the insurer's credit ratings, which were lowered by S&P Global Ratings, AM Best, and Fitch Ratings in July. TWG has denied wrongdoing, stating that no one has been harmed, and has submitted a plan to regulators to eliminate affiliate exposure, which the Delaware Department of Insurance is reviewing. The Mubadala-led investment remains incomplete about 15 months after announcement, part of a broader $15 billion equity raise, while Walter has agreed to sell the Los Angeles Lakers at a $12.5 billion valuation.

Impact on stocks 4

Financials▼ · 2 stocks
Fifth Third Bancorp
FITB
▼ NegativeRegulationrelevance

Fifth Third paused distribution of Delaware Life products amid SEC/DOJ probe and credit-rating downgrades.

Truist Financial Corp
TFC
▼ NegativeRegulationrelevance

Truist suspended its role as a distribution channel for Delaware Life amid the federal investigation.

Cloud & Digital Infrastructure▲ · 1 stocks
Consumer Staples▲ · 1 stocks

Off-coverage companies 7

Delaware Life InsurancePrivate▼ Negative
Regulationrelevance

Delaware Life is under SEC/DOJ examination over misclassified affiliated loans and saw its credit ratings cut.

TWG GlobalPrivate▼ Negative
Regulationrelevance

TWG Global's $10B Mubadala-led investment is delayed amid the probe, though it denies wrongdoing.

Guggenheim PartnersPrivate▼ Negative
Regulationrelevance

Guggenheim Partners is being examined by the SEC and DOJ alongside Walter's insurers.

AM BestPrivate± Mixed
relevance

Fitch RatingsPrivate± Mixed
relevance

Los Angeles LakersPrivate± Mixed
relevance

Mubadala Investment CompanyPrivate± Mixed
relevance

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