Travelers Wins U.S. Approval to Open Thrift

Travelers Group Inc. won approval from the U.S. Office of Thrift Supervision to operate a federal savings and loan, the latest step by an insurance company to move deeper into banking markets. The approval permits Travelers to convert a state-chartered Delaware-based bank into a federal thrift that will be known as Travelers Bank & Trust. While the savings and loan will be based in Delaware, it will make the bulk of its loans outside the state, according to the OTS. Now Travelers can use its new thrift charter to offer new banking services, such as savings accounts, increasing its ability to compete with thrifts and banks for new business. The new charter will also allow the company to combine its mortgage lending and trust business under one entity. Travelers shares fell 94 cents to close at $49.50 on the New York Stock Exchange.