U.S. Seeks Dismissal of MetLife Suit Challenging Systemic Designation
Monday, 05 11 2015, Category: Insurance and Reinsurance, Country: United States
MetLife Inc.’s lawsuit challenging its designation by regulators as critical to the economy should be thrown out, U.S. Justice Department lawyers said without making public their arguments to the judge.
MetLife on January 13 became the first nonbank to challenge a decision by a panel of regulators, led by the Treasury secretary, that it is a systemically important financial institution, or SIFI, subject to stricter oversight. The phrase more commonly used to describe such institutions is “too big to fail.”
The insurer argued that it’s already subject to comprehensive supervision on the state level and that enhanced federal oversight will raise the cost of financial protection for consumers.
Source: Insurance Journal