What happened
CNBC reported that two banks, Truist and Fifth Third, have paused the sale of products from Delaware Life, the insurance company owned by Mark Walter. The pause is tied to probes into the insurer. Earlier in the week, Walter's holding company said that "there has been no fraud" at Delaware Life and its affiliated company, Clear Spring Life and Annuity.
Why it matters
The decision by two banks to halt sales of Delaware Life products could impact the insurer's distribution channels and market presence. The probes, while not detailed in the report, add uncertainty. The company's denial of fraud is a direct response to the situation, but the pause itself may affect customer access and trust.