Report: Paulson says aid will be limited to banks.
The US Treasury Secretary Henry Paulson has told British insurance companies they will not be allowed state aid, it has been reported.
Paulson told insurers that state funds would go only to “federally regulated financial institutions that lend money,” The Times reported this morning.
Insurers including Aviva and Prudential have become the focus of media speculation in recent days, with traders worried they are over exposed to companies that may be unable to meet their obligations. Both have denied any need to raise fresh capital.
