Judge strikes down Metlife’s ‘too big to fail’ tag (Prudential and AIG Party!)

Jon Corporate, Economy, Fiscal Policies, Market Commentary

A U. S. District Judge swatted down the Financial Stability Oversight Council (FSOC) with a ruling about Metlife beig ‘too big to fail.’
‘Under Section 113 of the Dodd-Frank Act, the Council is authorized to determine that a nonbank financial company’s material financial distress – or the nature, scope, size, scale, concentration, interconnectedness, or mix of its activities – could pose a threat to U. S. financial stability. Such companies will be subject to consolidated supervision by the Federal Reserve and enhanced prudential standards.’
Such as:
‘American International Group, Inc.
‘General Electric Capital Corporation, Inc.
‘Prudential Financial, Inc.
‘MetLife, Inc
But wait a minute!
Reuters – U. S. District Judge Rosemary Collyer on Wednesday struck down the designation made by the heads of the country’s financial regulatory agencies that major insurer MetLife is systemically important to the U. S. financial system.
MetLife’s shares rose nearly 8 percent on the news, to $45.84, and could close at its highest level in more than four years.

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ March 30, 2016.