Boston, MA 10/06/2014 (wallstreetpr) – According to reports, Metlife Inc (NYSE:MET) has declared that it would challenge its designation as systematically important financial institution (SIFI). If everything goes as per plans, then FSOC (Financial Stability Oversight Council) will be required to organize an evidentiary hearing within one month (exact 30 days). The results of this hearing will be out in 60 days time, which means that MET will be informed by the regulatory authority if it can be designated as SIFI or not.
MET’s point of view on this matter:
Metlife Inc (NYSE:MET) considers itself not a threat for the financial system, which means that it does not constitute any adversity to the stability and diversity of the financial system. According to the company, it has lobbied against such designation very strongly. The complete process involves enlisting business and congressional industry support for its position.
SIFI’s designation matters a lot for the company as if it gets it, it will only be the third insurance company to be designated with such prestigious and high-class designation. So far only two insurance companies i.e. Prudential Financial and American International Group have been awarded prestigious SIFI designation. Apart from these two companies, only GE capital has earned this designation, but as a non-bank SIFI.
Recently FCOS noted its decision of designating MET as a preliminary SIFI for an initial period of one year and then to decide whether to extend that position or not. The entire decision depended upon MET’s acceptance of this offer. In a reply to this decision, Steven A. Kandarian, President, Chairman and CEO of MET told that MET strongly disagreed with the decision. According to him, MET was not ruling out any of the remedies that were available with Dodd-Frank to contest a SIFI designation. As per the information, the final decision in this matter will be out very soon.
