MetLife Issues Statement On House Passage Of Financial CHOICE Act

(RTTNews) - MetLife Inc. (MET) Chairman, President and CEO Steven Kandarian issued a statement on passage of the Financial CHOICE Act by the U.S. House of Representatives.

Kandarian said that the Financial CHOICE Act is an important step toward the permanent removal of the authority of the Financial Stability Oversight Council (FSOC) to designate non-bank insurance companies as Systemically Important Financial Institutions (SIFIs).

Kandarian noted that singling out a few large insurance companies for redundant regulation harms competition, leads to higher prices and less financial protection for consumers, and fails to make the financial system safer. The life insurance industry is already subject to a strong and proven state regulatory system with capital rules designed to address risks associated with the insurance business model.

Kandarian said, "Last year, a federal court rescinded MetLife's SIFI designation, ruling that FSOC's designation process was 'fatally flawed.' While MetLife is no longer a SIFI, only the repeal of FSOC's designation authority will provide the permanent fix that is needed."

Kandarian said, "If insurance companies engage in activities that pose a risk to the financial system, primary regulators should target those activities directly. An activities-based approach is a better way to address systemic risk. Regulating companies appropriately - not excessively - is critical to fueling robust economic growth and creating jobs."