The U.S. District Court for the District of Columbia has rescinded the decision by the Financial Stability Oversight Council (“FSOC”) designating MetLife, Inc., as a systemically important financial institution (“SIFI”).
The district court issued a sealed opinion, by U.S. District Judge Rosemary M. Collyer, setting forth its reasons for reversing the FSOC's decision under 12 U.S.C. § 5323(h).
The court ordered the parties to meet, confer, and file by April 6, 2016 a joint notice stating whether any portions of the sealed opinion should remain under seal.
MetLife's chairman, president, and chief executive officer, Steven A. Kandarian, said in a statement that the 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.”
The Treasury Department said in a statement that it was “confident that FSOC's determination was lawful and will continue to defend the Council's designations process vigorously.” It added that, “[i]n response to the financial crisis, Congress enacted Wall Street Reform, created the FSOC, and directed it to address potential threats to financial stability. FSOC conducted a rigorous analysis of MetLife, including extensive engagement with the company, and determined that material financial distress at MetLife could pose such a threat to the financial system. We firmly believe that FSOC acted well within its legal authority to protect the entire global economy.”
The government is likely to appeal the district court's ruling.
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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].