MetLife Granted Third Fed Extension to Submit Capital Plan

January 8, 2013

The Federal Reserve has granted MetLife Inc a third extension to submit its capital plan as the insurer moves closer to completing the sale of its deposit-taking business to a unit of General Electric Co.’s GE Capital.

The largest life insurer in the United States said it received a letter from the Fed granting an extension until June 30 to submit the plan.

MetLife has a bank holding charter because of its online banking business and is therefore overseen by the Fed. Last March the insurer failed a stress test and was blocked by the Fed from raising dividend or buying back shares.

The sale of the deposits portion of its bank to GE Capital got approval from banking regulators in December, moving MetLife a step closer to relinquishing the bank charter, which may mean the end of Fed oversight.

The company has, however, warned that it does not expect to buy back any shares in 2013, a blow to investors who have waited since the autumn of 2011 for a return of capital.

MetLife had received an extension from Sept. 30, 2012 until Jan. 5 to resubmit its capital plan. The September deadline was also an extension of an earlier June deadline.

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