MetLife filed a lawsuit Tuesday challenging its designation as a systemically important financial institution (SIFI) by the Financial Stability Oversight Council. The largest U.S. life insurer said it doesn’t deserve the systemic-risk label because its failure wouldn’t threaten the financial system.
Regulatory cloud looms over SIFI insurance companies
The legal challenge from MetLife will be the first test of the FSOC’s power. The FSOC was created out of the 2010 Dodd-Frank financial reform legislation and includes Treasury Secretary Jack Lew, Federal Reserve Chair Janet Yellen and Securities and Exchange Commission head Mary Jo White among its members.
Currently, SIFI insurance companies have a regulatory cloud looming over them, as the Dodd-Frank Act gives the Fed...
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