Regulating financial firms: MetLife wins a legal battle to be deemed unimportant

Posted: March 31, 2016 in economy
Tags: , ,

UK Only Article: 
standard article

Fly Title: 

Regulating financial firms

Rubric: 

An American court sides with a big insurer against a powerful new regulator

Location: 

New York

Main image: 

20160402_fnp506.jpg

LIFE-INSURANCE companies usually go to inordinate lengths to demonstrate their dullness. That makes MetLife’s chief executive, Steven Kandarian, extraordinary. He did what the head of no other big American financial firm has dared to: challenge head-on the legitimacy of the business-shaping decisions made with increasing frequency by regulators in the wake of the financial crisis. More remarkable still, he won. On March 30th a federal court ordered the Financial Stability Oversight Council (FSOC), a new regulatory committee, to rescind its designation of MetLife as a “strategically important financial institution”—a label that required it to have a bigger, and thus more expensive, cushion of capital.
MetLife is one of only four non-banks to have been declared a SIFI. Prudential Insurance, …

via Economic Crisis http://ift.tt/1RN8oKP

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s