MetLife, which has operations in Bloomfield, faces stricter federal oversight, after regulators on Thursday deemed the life insurer to be a “systemically important financial institution.”
MetLife said it will dispute the new designation, which was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which became law in 2010.
The designation by the Financial Stability Oversight Council means the council thinks MetLife would pose a threat to the country’s financial stability if it were to experience financial distress. The designation comes with consolidated supervision by the Federal Reserve and more stringent financial standards, which could include new capital requirements, stress testing and other measures, according to the FSOC, which was also created by Dodd Frank. The law was passed in the wake of 2008 financial crisis.
MetLife CEO Steven A. Kandarian argued in a statement that his company was a source of financial strength, rather than a national liability, in 2008.
“Imposing bank-centric capital rules on life insurance companies will make it more difficult for Americans to buy products that help protect their financial futures,” Kandarian said. “At a time when government social safety nets are under increasing pressure and corporate pensions are disappearing, the goal of public policy should be to preserve and encourage competitively priced financial protection for consumers.”
Other companies that have received the designation include American International Group, General Electric Capital Corp. and Prudential Financial.
MetLife has 30 days to request a hearing on the ruling. The designation could become final after that ruling.
