Banks Halt Sales of Delaware Life Products Amid Federal Probes into Mark Walter’s Business Empire

Major U.S. financial institutions have begun distancing themselves from insurer Delaware Life as federal authorities ramp up investigations into the financial practices of billionaire executive Mark Walter.

Truist Financial Corp. and Fifth Third Bancorp have reportedly paused the sale of products issued by Delaware Life, a move that underscores growing institutional concern over the insurer’s reporting of approximately $20 billion in assets. The assets in question are affiliated with other entities controlled by Walter, the CEO of Guggenheim Partners and primary owner of the Los Angeles Dodgers.

The decision by the two banks follows a period of heightened regulatory scrutiny involving Delaware Life and its affiliate, Clear Spring Life and Annuity. According to regulatory filings, both insurers have been served with grand jury subpoenas in connection to investigations currently being conducted by the U.S. Attorney’s Office in Manhattan and the Securities and Exchange Commission (SEC).

A Massive Revision in Disclosures

The investigations were sparked, in part, by a significant discrepancy in how the insurers categorized their holdings. Following the receipt of federal subpoenas in February, Delaware Life conducted an internal review of its disclosures. That review resulted in a startling revision: the firm shifted the classification of its total invested assets tied to other Walter-controlled companies from a modest 3% to a staggering 42%.

While the federal probes continue, TWG Global—Walter’s holding company—issued a statement earlier this week adamantly denying any wrongdoing, asserting that “there has been no fraud” at either Delaware Life or Clear Spring.

Institutional Fallout

The decision by Truist and Fifth Third to suspend sales marks a significant blow to the insurer’s distribution network. Truist had maintained a long-standing partnership with the firm, while Fifth Third had only recently begun offering Delaware Life products as of April.

A person familiar with the situation, speaking on condition of anonymity, noted that Delaware Life is actively working to keep both banks informed as they attempt to reduce the level of affiliated-party assets. “Our communications with key distribution partners remain open and cooperative,” a spokesperson for Delaware Life stated.

Growing Legal Pressure

The controversy surrounding Walter’s business dealings has intensified over the past year. In September 2025, federal agents executed a warrant aboard a private plane in Chicago, seizing the billionaire’s phone and computer as part of an ongoing investigation into his business operations.

The scrutiny has moved beyond the insurance sector and into the sports world. Earlier this month, Walter reached an agreement to sell his majority stake in the Los Angeles Lakers, a move that came less than a year after his initial acquisition of the team, further fueling speculation about the stability of his expansive investment portfolio.

Representatives for Fifth Third declined to comment on the matter, while Truist did not immediately respond to requests for comment. Federal authorities have not released details regarding the timeline of their ongoing inquiries.