The Financial Stability Oversight Council (“FSOC”) has reaffirmed its designation of MetLife, Inc., for enhanced prudential standards and supervision by the Board of Governors of the Federal Reserve System.
The FSOC said in a statement that it recently conducted its annual review of its designation of MetLife. As part of the annual review process, the FSOC said, the company was invited to meet with staff to discuss the review and to submit information regarding any change that the company deemed relevant to the threat the company could pose to financial stability.
The FSOC said that, following a discussion of recent developments at the company, it voted not to rescind the designation of MetLife.
The FSOC said that it provided the company and its lead state insurance regulator with a notice explaining the primary bases for its decision not to rescind the designation. According to the FSOC, the notice addressed the material factors raised by the company in its submission to the FSOC contesting the determination during the annual reevaluation.
The FSOC said that, as a general matter, if it determined in an annual review that a company had addressed the key factors in its basis for its designation, it would rescind the designation.
MetLife is challenging its designation in court.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].