Delaware Insurance Commissioner Karen Weldin Stewart has recently sent a letter to U.S. Treasury Secretary Jacob Lew and other federal regulators urging them to reconsider their vote to propose that MetLife be labeled as a “systemically important financial institution” (SIFI).
“Based on my experience as an insurance regulator, and a regulator of one of MetLife’s larger insurance subsidiaries, I do not believe that MetLife’s businesses and corporate structure create the kind of systemic risk that Dodd-Frank’s SIFI designation process was designed to address,” said Stewart.
Stewart said state regulators are capable and competent to continue the oversight of the company.
MetLife said last month that the Financial Stability Oversight Council (FSOC), led by Secretary Lew, had made a “proposed determination” that MetLife should be designated a nonbank SIFI under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
MetLife said it “strongly disagrees” with its designation and has since requested a hearing before FSOC.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the FSOC was given the power to designate financial firms whose failure would jeopardize the financial stability of the U.S. and label them SIFIs.
“As the MetLife group does not engage in any significant non-insurance activities, let alone activities that would create systemic risk, another layer of oversight over MetLife’s activities is redundant, unnecessary and will only serve to impede the quality of service MetLife provides to its customers and the value it delivers to its shareholders,” said Stewart.
The following is a copy of Stewart’s letter.
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