As expected, and long-anticipated, the Financial Stability Oversight Council has initiated a process that could lead to insurance giant MetLife being classified as a systematically Important Financial Institution, subjecting it to greater regulatory expectations and capital requirements.
In a statement, following a closed session at the Treasury Department, the FSOC provided only sparse information about its proposed determination and MetLife was not specifically named. Following its unanimous vote (with one member voting present), the FSOC says it “provided the company with a detailed written explanation of the basis of the proposed determination,” giving it 30 days to request a hearing to contest the proposed determination. After that hearing, if one is requested, a final determination will be made.
