U.S. District Judge Rosemary Collyer on Wednesday rescinded, or struck down, the 2014 designation made by Financial Stability Oversight Council that major insurer MetLife Inc. is a Systemically Important Financial Institution (SIFI), or “too big to fail.”
MetLife had argued in the U.S. District Court for the District of Columbia that the FSOC used a “secretive and flawed” process when it determined that a collapse of the insurer could hurt the U.S. financial system just as much as failure of a major bank such as Citigroup.
In a press release, MetLife CEO Steve Kandarian said: “Today’s ruling validates MetLife’s decision to seek judicial review of our SIFI designation. From the beginning, MetLife has said that its business model does not pose a threat to the financial stability of the United States. This decision is a win for MetLife’s customers, employees and shareholders.”
Collyer’s opinion is currently sealed, but parts may be made public next month, according to the order.
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