MET MetLife Inc

REGULATION

Judges Question MetLife Oversight

U.S. oversight of MetLife Inc. was called into question at a court hearing where the Obama administration sought to reassert the government's authority to regulate the large insurer.

Judges at the U.S. Court of Appeals for the District of Columbia Circuit asked pointed questions to government lawyers and at times appeared to express sympathy for MetLife. But the three-judge panel pushed back on some of MetLife's arguments as well and didn't clearly indicate its direction for a final decision. It could take months before the panel issues an opinion.

The Financial Stability Oversight Council is appealing to the court to reassert federal oversight of MetLife. It voted in 2014 that the company was a "systemically important financial institution," but U.S. District Judge Rosemary Collyer overruled that decision, saying it was unreasonable and based on a "fatally flawed" process.

The panel hearing Monday's arguments included two appointees of President Barack Obama, Judges Sri Srinivasan and Patricia Millett, as well as Judge A. Raymond Randolph, an appointee of President George H.W. Bush.

--Ryan Tracy

BANK CAPITAL

Fed Leaves Buffer At Current Level

The Federal Reserve voted not to change a buffer that forces big banks to increase capital levels during a credit boom.

This is the second time regulators have agreed not to require banks to increase the amount of capital they will need to hold under the "countercyclical buffer."

The buffer, currently set at zero, is among several tools regulators can use to help increase the resiliency of the financial system.

The aim of the capital requirement is to force banks to shore up additional capital in good times to help mitigate periods of stress.

The Fed said it consulted with the two other bank regulators, the Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency, in setting the threshold.

If the agencies decide to increase the buffer, banks would have 12 months before the increase would go into effect.

--Donna Borak

CREDIT MARKETS

PdVSA in $3 Billion Bond-Swap Deal

State oil producer Petróleos de Venezuela SA has concluded a deal to swap almost $3 billion of new bonds for those with a longer maturity, a move Wall Street analysts say reduces chances of default next year.

PdVSA obtained the minimum required participation at the last minute after having extended the deadline three times, sweetened the terms and reduced the amount of tendered bonds.

The company will swap $2.8 billion bonds maturing in 2017, or about 52% of the tendered amount, for $3.4 billion bonds due in 2020, it said in a statement.

The swap will reduce Venezuela's debt load to $13 billion from $15 billion between now and the end of 2017.

--Anatoly Kurmanaev, Carolyn Cui

(END) Dow Jones Newswires

October 25, 2016 02:47 ET (06:47 GMT)

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