MetLife CEO: We're not too big to fail

by 20 Jan 2015
Time and time again we hear of regulators targeting large financial corportations to pay up for shoddy mortgage deals during the run-up to the financial crisis. Now, it seems the tables have turned.

MetLife is suing a panel of regulators, known as the U.S. Financial Stability Oversight Council (FSOC), to fight its designation as “systemically important,” making it the first financial company to go to court over the issue since the government started singling out "too-big-to-fail" institutions, according to the New York Times.

The label subjects the company to more oversight, even though insurers already fall under a comprehensive state-level “regime that supervises every aspect of MetLife’s U.S. insurance business,” according to a complaint filed by MetLife.

The court documents also stated that the FSOC relied on “vague standards and assertions, unsubstantiated speculation and unreasonable assumptions” in tagging MetLife with the label and denied the company an opportunity for rebuttal.

The company said it isn’t a systemically important financial institution because it “is not predominantly engaged in financial activities” as defined by the Dodd-Frank law behind the designation, according to Bloomberg


  • by JOHN DURHAM | 1/20/2015 10:01:31 AM

    This event confirms the logic of regulation, which is to protect the public. But, how is the public protected when by out and out tyranny. And, on the other hand, the culprits over at the TBTF banks are still not in Jail but have moved enough money to take over absolutely all three branches of our government. The removal of Glass-Steagall caused that. Yet, Glass-Steagall took almost no actual "regulation", it was so simple and clear cut.

    Therefore, we can say that when existing legislation does not actually protect, "regulation" by an army of agents will not protect the public. Dodd-Frank is a known joke and with the December changes offers nothing in protection to the public, exactly what the TBTF banks wanted. It is time to divide legitimate banks from the dead weight and have public banks created to take over the State and Federal bank business. Past time to bring Wall Street to an end for other reasons as well, but I will not raise those issues that continually take us into wars here.


Should CFPB have more supervision over credit agencies?