Principal Financial applies for federal loan

Principal Financial Group Inc (PFG.N: Quote, Profile, Research, Stock Buzz) said on Tuesday it had applied to take part in a federal lending program for financial services firms. The provider of retirement products, life and health insurance said it expected to be able to borrow up to $2 billion, if approved for the program. Principal joins several other U.S. life insurers, and Dutch insurer Aegon NV (AEGN.AS: Quote, Profile, Research, Stock Buzz) — on behalf of its U.S. unit Transamerica — to have applied for government funding as part of the United States’ $700 billion bank bailout.