WASHINGTON--The Treasury department is maintaining its stancethat insurers seeking federal bailout dollars must do so through afederal regulated entity, leaving those without a bankingsubsidiary or organization out in the cold.

At a press conference announcing a new federal facility tosupport lending to consumers and small businesses, TreasurySecretary Henry Paulson said that the department would continue towork only with those financial entities "where there is a federalregulator" as it considers applications for funds from the TroubledAsset Relief Program (TARP).

Mr. Paulson noted that several insurance companies have federalcharters, either through owning banking institutions or charters asa bank holding company, and that those who have applied will beconsidered. "To broadly go to insurance companies," he added,though, "we have not made that decision yet."

At least four insurers have publicly announced their intentionsto seek federal funds through the federal Capital Purchase Programwithin the TARP, including Hartford Financial Services Group Inc.,Genworth Financial Inc., Lincoln National Corp., and AEGON N.V.

Overall, Secretary Paulson said the Treasury is working toestablish processes for the companies and markets that fall withinthe parameters of the TARP. "We're working all the time to developand deploy programs that we think will work and will be effective,"he said.

Going forward, he said that the Treasury is not currentlyplanning to seek more funding for the TARP from Congress, but thata process for doing so has been established and would be followedwhen the next wave of federal funds are to be dispersed. "There'sno timeline for when," he said, "but there is a process."

The secretary also said that Treasury would respond when thetime comes should lawmakers demand that the TARP be expanded, toinclude automakers or others. Additionally, he criticized those whoargue that the continuing troubles in the credit market are proofthat the Treasury's actions have been ineffective. It would be"na?ve" he said, "to think that a bill could be passed, or a singleaction be taken, that would make all our troubles go away."