WASHINGTON–The Federal Reserve Board has approved theapplications of Hartford Financial Group and Protective LifeCorporation to acquire troubled savings and loans–a move that makesthem eligible for federal bailout money.

At the same time, the Office of Thrift Supervision said it hasapproved the application of the Phoenix Companies, Hartford, Conn.,to acquire American Sterling Bank, based in a community near KansasCity, Miss.

The insurers made the acquisitions in an effort to meetstandards set by the Treasury Department to receive funds under theagency's Capital Purchase Program, a pool of some $250 billion thatis part of the $700 billion federal Troubled Asset Relief Program,or TARP, often referred to as the “bank bailout” program.

The application of Genworth Financial, Richmond, Va., to becomea thrift holding company and then acquire a thrift is stillpending, according to a spokesman for the Office of ThriftSupervision. Fed approval for Hartford and Protective came throughlate Wednesday.

Genworth is the last-known remaining insurer that has applied tobecome a thrift holding company in order to receive funds under theCPP program.

Under guidelines issued by the Treasury Department when itstarted the program, federal agencies were supposed to completework on the applications for insurers and others seeking toestablish federally regulated units by Jan. 15.

The Hartford before it could move on its acquisition saw the Fedlast week approve the application of foreign insurer Allianz SE,Munich, to acquire an interest in Hartford that could reach $4.25billion if Allianz exercises warrants it was granted in the Oct. 6deal. That would give Allianz a 30 percent stake in thecompany.

The Fed approval was the last step needed for Hartford toacquire Federal Trust Corporation, a unitary thrift holding companybased in Sanford, Fla.

Last week, Hartford and Lincoln National Corporation,Philadelphia, received approved to become savings and loan holdingcompanies.

In its public statements, Hartford said it estimated that itwould be eligible for a capital purchase of between $1.1 billionand $3.4 billion from the CPP under existing Treasuryguidelines.

Hartford has agreed to pay $1 a share, or $10 million, forFederal Trust, and to add capital to the institution to ensure itis adequately capitalized.