Morning Agenda: Why Judge Removed MetLife’s ‘Too Big to Fail’ Label
ByWHY JUDGE REMOVED METLIFE’S ‘TOO BIG TO FAIL’ LABEL | The federal judge who stripped MetLife of its “too big to fail” label on March 30 found that the regulators’ analysis fell short in several areas in concluding that the United States’ biggest life insurer was “systemically important,” Victoria Finkle reports in DealBook. In her ruling, which was unsealed on Thursday, Judge Rosemary Collyer of the Federal District Court for the District of Columbia also said the Financial Stability Oversight Council failed to properly account for the expected costs of heightened oversight under the designation.
The Dodd-Frank Act provides regulators two standards for determining whether a firm is “systemically important.” The council chose the first standard — that “material financial distress” at a firm “could pose a threat to the financial stability of the United States” — against MetLife, but the judge said in her ruling that there were a number of problems with that reasoning…
Morning Agenda: Why Judge Removed MetLife’s ‘Too Big to Fail’ Label
