After a year and a half of extensive and in-depth analysis — including significant engagement with the company — the Council has determined that material financial distress at MetLife could pose a threat to U.S. financial stability. Designation of a nonbank financial company is a critical tool for the Council to address potential threats to U.S. financial stability. Consistent with its mandate, the Council remains focused on protecting the broader economy from the types of risk that contributed to the financial crisis.
The Council’s designation is the product of a three-stage process, during which the Council (1) applies uniform quantitative thresholds to identify nonbank financial companies for further evaluation, (2) analyzes the companies using a broad range of information available to the Council primarily through existing public and regulatory sources and (3) contacts each company that the Council believes merits further review to collect information directly from the company that was not otherwise available in the prior stages. Each nonbank financial company that is reviewed in Stage 3 is immediately notified that it is under consideration and is provided an opportunity to submit written materials related to the Council’s consideration of the company for a proposed designation.
Read the FSOC press release.