House Passes Senate Version Of Dodd-Frank Amendment

American International Group Inc (NYSE:AIG), MetLife, Inc. (NYSE:MET), and Prudential Financial Inc (NYSE:PRU) got some welcome, if anticipated, news yesterday when the House of Representatives passed the Senate’s version of an amendment to the Dodd-Frank Act giving the Federal Reserve the authority to issue different capital rules for insurance companies designated as systemically important financial institutions (SIFI) than the ones that already exist for major banks. Pres. Obama is expected to sign the bill, but it may still be several months before actual capital rules are finalized.

“We view this as a critical step in the regulatory process as it provides the Fed ample room to maneuver in developing rules and regulations specifically tailored to the business models and risks...