Federal regulators are about to declare MetLife Inc. a potential threat to the financial system, a label that would subject the insurer to oversight by the Federal Reserve, Bloomberg reported Wednesday.
A decision by the Financial Stability Oversight Council (FSOC) may come as early as July 31.
New York-based MetLife, the biggest US life insurer, could be subject to stricter capital, leverage and liquidity requirements under Fed supervision.
Company executives have met more than 10 times with FSOC officials to argue MetLife does not pose a risk to the financial system.
Any decision to designate MetLife as systemically important is subject to a 30-day appeal period. After a hearing, the regulators will hold a final vote.
US Treasury Secretary Jacob J. Lew heads the council, whose 10 voting members also include the heads of the Fed, the Securities and Exchange Commission and the Federal Deposit Insurance Corp.
The council has designated three non-bank financial companies systemically important — insurers American International Group Inc. and Prudential Financial Inc., and General Electric Co.’s finance unit, the report said.
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