Hartford Financial Services Group Inc. is infusing $20 million into a troubled Florida thrift to keep it afloat, buying time in hopes the Treasury Department will allow insurers to participate in the Troubled Asset Relief Program.

Hartford could lose the investment if ts deal to buy Federal Trust Corp. in Sanford falls through, observers said. But with regulators threatening to seize the $585 million-asset thrift — and eliminate Hartford's best chance at government capital — the gamble is worth taking, they said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.