AgenteNews Insurance Producer's Online Resource
On March 29, a U.S. District Court judge ruled in favor of MetLife Inc. in its bid to reject the “Too Big to Fail” label.
The official designation of “Systemically Important Financial Institution” or SIFI, first applied to MetLife in December 2014, has put the company at a competitive disadvantage through much tougher rules on capital and on the use of borrowed money as a risk reduction strategy.
MetLife Chairman, President and CEO Steven A. Kandarian issued the following statement:
“Today’s ruling validates MetLife’s decision to seek judicial review of our SIFI designation. From the beginning, MetLife has said that its business model does not pose a threat to the financial stability of the United States. This decision is a win for MetLife’s customers, employees and shareholders.”
Investors responded to the news by driving MetLife shares up 5.4% on the day of the ruling. Shares also rose about 2% for MetLife competitors Prudential and AIG, expected to follow suit against their own SIFI designations.
