MetLife is launching a legal attack against a key part of the 2010 financial reform law in an attempt to escape greater regulatory scrutiny with a case that challenges how a new super panel of regulators fundamentally conducts its business.
The life insurance giant on Tuesday asked a federal court in Washington to set aside the Financial Stability Oversight Council’s designation of the company as a so-called systemically important financial institution and to postpone any future action against the company until the Federal Reserve finishes writing rules for insurance companies it will supervise under the 2010 Dodd-Frank law.
Financial reform advocates are keeping a close eye on the case as well.
“Perversely, I think this lawsuit is actually good news for FSOC, financial reform and the country because there will be at least a somewhat open court proceeding, which I expect will show the thorough, comprehensive deliberation of FSOC and the robustness of the designation process,” said Better Markets President Dennis Kelleher, who advocates for tougher rules for Wall Street giants.”
Read the full POLITICO article by Zachary Warmbrodt here.