MetLife Inc.’s designation as a non-bank systemically important financial institution was upheld by the Financial Stability Oversight Council on Wednesday.
After MetLife was first designated in December 2014, it appealed the decision and has since challenged it in an ongoing court case in U.S. District Court in Washington.
FSOC members met in executive session to discuss an annual review of its SIFI designation of MetLife, which will subject the firm to enhanced prudential standards and supervision by the Federal Reserve.
“Following a discussion of recent developments at the company, the council voted not to rescind the designation of MetLife,” said a Treasury Department statement, noting the company and its lead state insurance regulator were informed of the primary basis for the council’s decision. “As a general matter, if the council determines in an annual review that a company has addressed the key factors in the council’s basis for its designation, the council would rescind the designation,” The Treasury statement said.
MetLife spokesman Randolph Clerihue called the failure to rescind the designation “disappointing. While FSOC’s decision comes as no surprise, it does highlight the need for Congress to move forward with legislation that provides more transparency to FSOC’s actions so that companies can address concerns directly and take steps that lead to de-designation,” Mr. Clerihue said in an e-mailed statement.