METLIFE FORMALLY CHALLENGES ‘SYSTEMICALLY IMPORTANT’ DESIGNATION

Original Story: nytimes.com

MetLife announced on Friday that it would fight a proposal by a government body to designate it a systemically important financial institution, a category that would subject it to more intensive regulation than most other life insurers.

The Financial Stability Oversight Council, which was created in the Treasury Department but includes top officials from other regulators like the Federal Reserve, has the authority to vote on the designation under new rules established by the Dodd-Frank financial-overhaul law. MetLife had already said publicly that it did not consider itself systemically important under the Dodd-Frank criteria. A Nashville Insurance Defense Attorney is experienced in insurance dispute cases.

In a regulatory filing on Friday, MetLife said it had requested a hearing so the firm could contest the proposed determination.

Under the regulations, the council will schedule a hearing within 30 days. The council will then have 60 days to make a final determination on the company’s status. If MetLife is still designated systemically important, the company could bring a lawsuit in federal court. A Charleston Insurance Lawyer is experienced in handling insurance related lawsuits.

Already, three nonbank institutions have been designated so-called SIFIs, or systemically important financial institutions: the American International Group, Prudential Financial and GE Capital. When Prudential was first named to the list, it filed an administrative appeal but did not prevail. Prudential did not take the issue to court.

Much of the insurance industry is regulated by the states, and even the insurers that are designated as systemically important will continue to follow state regulations. But the SIFIs are subject to additional oversight by the Fed and tougher new capital requirements, rules that reduce the institutions’ degree of leverage. MetLife has long said that the coming capital requirements will make it uncompetitive with other life insurers.