Several representatives questioned why Woodall's recommendation that MetLife not be designated a SIFI
was ignored by other members of FSOC.
A more transparent designation process that avoids a one-size-fits-all approach would improve fairness and efficacy and make it easier for firms to take preemptive actions to reduce their contributions to systemic risk and thus avoid SIFI
In June 2013, the FSOC classified AIG as a nonbank SIFI
, which subjects the company to regulation by the Federal Reserve, in addition to other regulators such as the U.
That's why banks do and don't want the SIFI
label, which comes with additional regulations.
life/ health insurer based on 2014 total admitted assets of $608 billion, according to BestLink--and it has challenged the SIFI
designation in federal court, it has become the public focus of the struggle between the insurance industry and regulators.
The one-year results from the SIFI
study have shown durable improvements in pain, disability, and quality of life with the iFuse procedure.
The FSOC's designating of nonbank financial companies as SIFIs
has been the lightning rod.
We anticipated that the non-bank SIFI
capital rules would be known by now, but recent statements by the Federal Reserve suggest that we may not see draft rules until 2015.
When the FSB announced recently that asset managers should be considered for SIFI
designation, the FSOC began the designation process for BlackRock and Fidelity.
Consistent with SIFI
identification principles that the Financial Stability Board has articulated, the council has indicated that the core factors that we intend to look at when deciding whether a particular firm is systemic are size, interconnectedness, and availability of substitutes for the services provided by the firm.
There should be at least 80 SIFIs
to avoid smaller banks gaining an advantage from holding less capital and to prevent another unintended consequence that the bigger banks are seen as safer, Flint said.
For MetLife, the SIFI
designation has had a significant impact on its capital plans.