"Nolaig Shona Dhuit!"
 |
Merry Christmas To You And Yours! |
Posted on 12/26/2014 3:19:06 PM PST by Lorianne
A panel of regulators said on Friday that MetLife required heightened scrutiny by the Federal Reserve because of its size, leverage and interconnectedness with other financial institutions.
“Material financial distress at MetLife could have significant adverse effects on a broad range of financial firms and financial markets,” the Financial Stability Oversight Council said in a 31-page statement explaining why it had voted 9 to 1 on Thursday to designate MetLife a “systemically important financial institution,” or SIFI. In such a situation, the market disruption could be severe enough “to inflict significant damage on the economy,” the council found.
The council, which was created in response to the financial crisis of 2008, has been identifying institutions that could spread trouble through the financial system if they got into trouble themselves. Its rules of operation, established under the Dodd-Frank financial reform law, require it to wait at least one business day before making public statements about its decisions. MetLife itself disclosed on Thursday that it had been designated a SIFI.
Banks and other institutions that are designated systemically important will be subject to tougher capital, liquidity and disclosure requirements, as well as supervision by the Fed. The goal is to spot potential problems early and keep them from spreading disastrously through the financial system.
Banks are deemed systemically important based solely on their size. But for insurers and other nonbanks, the evaluations have been more complex, taking many factors into account. The council spent more than a year on its review of MetLife.
(Excerpt) Read more at dealbook.nytimes.com ...
Then they'll move on to the smaller ones.
It’s way past time to do away with this “too big to fail” bs.
Government as Good Fellas.
I used to work for Met a long time ago. Solid ins co., strong assets. Amazing how things have been turned so upside down.
NEVER would I have thought this. I now worry that one day my life policy (old Kemper) will never pay out. Anyone with life insurance should too regardless of the insurance co.
What do you think of this?
For later.
BUMP!
Their CEO is somewhat conservative. More political payback from Soros, Buffet and other competitors
|
Merry Christmas To You And Yours! |
I have dental insurance with MetLife through the VA. Every dentist I’ve used said it’s the best dental insurance they’ve ever seen. My wife and together costs $82 a month.
The solution simple...break them up into smaller companies that can no longer pose a threat to the economic health of the rest of us if they go under.
“A government big enough to give you everything you want, is a government big enough to take away everything that you have.”
Promise to lockup the ceo and take their many millions from them and you will find the company running like clockwork.
What makes you think Met Life isn't a solid insurance company?
This is about government regulators, regulating.
I would also add that Met Life had turned town TARP cash.
The "too-big-to-fail" thing is really nothing new, civil engineers have had to deal with it for hundreds of years.
It's the idea that someone builds a huge building in the middle of down --they follow all the rules but suddenly everyone finds out some big surprises (nobody knew there was a big soft spot deep in the earth --or-- nobody knew what static electricity would to the reinforcing steel ---etc.). Sure the building's on private property but if it falls over it'll squish all the neighbors. The only solution is to have City Hall pay to fix it and in the future be a LOT more strict w/ the building codes for newer buildings.
Same thing w/ finance, and back in '09 they decided it would be cheaper for the gov't to fix the lenders and but make 'em pay it back (they did) and in the future we needed a new set of financial codes. Unfortunately that part was screwed up by Pelosi, but the problem was idiot democrats, not TBTF....
nNo government meddling with MetLife and no bailout.
I don’t necessarily have a problem with it as long as it is not applied arbitrarily but I do question a government that whistles past an $18 trillion and growing debt to point out systemic risk. I’m pretty sure Russia had no intentions of jacking their interest rate up to 17% to stabilize the Ruble but when crisis hits you have to do what you have to do. If we ever have to do that again it will blow the budget to smithereens.
dumb comment on my part. read the summary and commented, then later read more.
Commenting on an article with out reading it in full is a FreeRepublic tradition that we all participate in. :)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.