U.S. lawyer asks court to reinstate MetLife too big to fail tag

U.S. lawyer asks court to reinstate MetLife too big to fail tag

U.S. lawyer asks court to reinstate MetLife too big to fail tag The government correctly labeled MetLife Inc. “too big to fail,” a U.S. lawyer told a federal appeals court, urging the judges to overturn a ruling that dealt a major blow to efforts to rein in risk in the financial system.

The lawyer, Mark Stern, said the Financial Stability Oversight Council followed proper procedure when it designated MetLife as a systemically important financial institution. A lower-court judge erred in March when she declared the agency’s actions as “fatally flawed,” he told the Washington-based appeals court Monday during arguments in the case.

Last Friday a huge cyber attack was launched – possibly the first ever from the internet of things – are you ready for all the latest issues facing cyber insurance?

The “too big to fail” designation would have subjected the biggest U.S. life insurance company to enhanced capital and liquidity requirements and compelled the firm to prepare plans for its orderly dissolution in the event of a crisis.

The government warns that U.S. District Judge Rosemary Collyer’s ruling threatens to undermine the financial regulatory reform implemented following the 2008 recession.

Copyright Bloomberg 2016
  • P. Baker 10/24/2016 3:59:11 PM
    Too big to fail is a dangerous concept binding a diminishing group called taxpayers to failed corporations. Here an American court attempts to rein in a corporation's risk position and another branch of government is quick to call the corporation "too big to fail". It was only a few years ago corporations persuaded our Congress to make it more difficult for the average American to declare bankruptcy should they experience economic hardship but these same corporations want the taxpayer to bail them out when they find themselves in financial trouble. Now,corporations that have gotten to big to fail, through reckless behavior, bad decisions and failed judgment can play havoc with society at large. Then the government steps in, without court jurisdiction, demands these corporations to pay penalties and fines negotiated by the CEO's and the government. It almost seems like a raid by government which then is often paid for by the corporation's investors allowing many of these CEO's to keep their prestige, their positions, their salaries and probably their financial bonus awards.
    Post a reply
  • childress 10/25/2016 6:01:55 PM
    Its not something new.. Even in the past many brands were given the title "Too big to fail" and it was very much true. God Bless America
    Post a reply