Bob Brinker's Partner, Genworth Financial, Failed for TARP Fund Qualification

Bob Brinker's Partner Genworth Financial has failed to qualify for TARP funds. According to Reuters,

"Genworth abandoned its TARP request, saying the Office of Thrift Supervision had failed to approve its application to become a savings and loan holding company.

Genworth had planned to buy Interbank fsb, a Maple Grove, Minnesota, lender, to be eligible for TARP money."

On Brinker's website under Money Management Services he writes:

Bob Brinker has partnered with Genworth Financial Asset Management to offer a personalized and professional money management service. Dollar cost averaging strategies are also available for those investors who want to minimize entry point risk. The account minimum size is $100,000. A financial agreement exists with GFAM for services, including referrals. Please refer to Schedule H for details.

The article from Reuters continues:

"'I don't believe Genworth has a viable business model in the current market environment,' said Alan Rambaldini, an equity analyst at Morningstar Inc in Chicago. 'The question is whether Genworth can muddle through the next couple of years until the economy turns around. That's the only thing that can save them.'"

Over the years, Brinker has told those interested in buying bonds of troubled companies to look at the stock price. He says avoid buying the bonds of companies whose share price has tumbled. Stockholders come behind bond holders in a liquidation, but your odds of being repaid your bond money are higher when the stock price is high where the company can sell shares to raise capital to repay the bond holders.

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If you have money at Genworth Financial, or any money management company, you want to make sure your account is insured by SIPC. The Securities Investor Protection Corp (SIPC) insures accounts for up to $500,000 in cash and registered securities. Non-SEC-registered investments, for example commodity futures contracts, are not insured by SIPC.

IF you have money at Genworth, or any other broker whose share price has tumbled to penny stock status, and it is insured by SPIC, then I'd consider keeping the amount under the $500,000 coverage limit, especially when people question the company as a going concern.