MetLife Wins Battle to Remove ‘Too Big to Fail’ Label
Mar 30, 2016
MetLife, American’s largest insurer, has won its battle with the U.S. government to shed its “too big to fail” designation. The New York Times reported today, March 30, 2016, that a federal judge in Washington rescinded the designation of MetLife as a “systemically important financial institution,” a label that the insurer has been fighting to remove since 2014 because of the extra regulatory scrutiny it brings. The government can appeal the decision.
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The National Association of Insurance Commissioners responded to the ruling, with John M. Huff, NAIC President and Missouri Insurance Director saying,
“The NAIC is pleased with the court’s decision to rescind the designation of MetLife. Although we won’t know the judge’s reasoning until the opinion is released, the result is consistent with what we as state regulators and I during my time as (Financial Stability Oversight Council) representative have always said – that FSOC’s designation of MetLife disregarded the state insurance regulatory system and was inappropriate.”
Adam Hamm, North Dakota Insurance Commissioner and Designated State Insurance Commissioner currently serving on the FSOC added, “I’m very encouraged to see the court show support of our long-time point of view. I look forward to reviewing the court’s decision and continuing to work with the Financial Stability Oversight Council to gain full recognition of the state-based system of insurance regulation as a means to prevent risk in the insurance sector.”
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