Sept 19 Insurer Prudential Financial Inc
said the U.S. financial risk council has designated the company
as systemically risky in a final vote, bringing it under
stricter regulatory oversight.
Prudential had said in July it would contest a proposal by
the Financial Stability Oversight Council, a new body of
regulators created by the 2010 Dodd-Frank reform, to designate
it as systemically important. ()
The designation shows that regulators believe the company is
so big that its failure could destabilize the financial system.
The firm now comes under regulation by the Federal Reserve and
must meet capital and other requirements.
Shares of the company were marginally down at $78.43 in
trading after the bell, after closing at $78.69 on the New York
Stock Exchange on Thursday.