Judge Rips 'Unreasonable' Decision on MetLife in Order -- Update
April 07 2016 - 12:00PM
Dow Jones News
By Ryan Tracy
WASHINGTON -- A judge rescinded federal oversight of MetLife
Inc. last week because regulators made an "unreasonable" decision
to ignore the cost of stricter supervision of the firm, according
to a court opinion unsealed Thursday.
U.S. District Judge Rosemary Collyer also wrote in her opinion
that the Financial Stability Oversight Council, which had found
MetLife to be a systemically important financial institution,
abandoned a previous promise to consider MetLife's vulnerability to
financial distress, without explaining why it chose to do so.
The findings by Judge Collyer raise questions about the process
used to bring MetLife and other large U.S. insurers, including
American International Group Inc. and Prudential Financial Inc.,
under stricter federal rules. MetLife is the only firm to challenge
regulators' decision in court so far.
The Obama administration is expected to appeal the ruling in the
coming weeks, but hasn't said explicitly that it will do so.
A spokesman for U.S. Treasury Secretary Jacob Lew, who heads the
oversight council, didn't immediately respond to a request for
comment Thursday. The Treasury Department last week said it would
"vigorously" defend its process for designating systemically
important firms.
"We remain pleased with the U.S. District Court's decision," a
spokesman for MetLife said.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
April 07, 2016 11:45 ET (15:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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