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Breakingviews: Have you MetLife's CEO?

Friday, August 01, 2014 - 03:42

Richard Beales and Antony Currie preview U.S. regulators' possible designation of MetLife as a systemically important financial institution and whether the insurer should resist.

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Steve can Dario has provisionally we could get -- way of putting in headline he's the -- of MetLife figures insurance company. That I could change. Accompanying me say this week as soon as this week be cool being named it significantly important financial institution by the -- big group of US regulators and it could bring. -- full MetLife for the company Pharmacia and then they'll all that happy about it while we can't answer they've what's the story behind getting pulled similar to last week's and the man life is considering. Sitting in the government saying there's no way you can make this a Sissy. Went -- a bank we shouldn't be treated as a bank it's ridiculous. And they may well have a good point. It sure is and carried it took so let's take this little tour of the different from back as. It was obvious one. It to the bank's local trouble in the crisis -- -- -- lending but also the fact may have missed much funding study did not must arrest has not been its its insurance companies. I just about as perfect matches you can needs to GAAP financial markets that if -- citizen and have that big. Risk secondly we've been about the rules exactly and that's not -- -- -- is about is the great thing if they -- it couples to be as cities in the same way as the -- Then MetLife and I think credentials of the along with have to princess on a global capital. And thanks to the that would increase that cost. Rate of return on equity. And that forming the right all the banks done an -- which businesses should be ready via. And if they're not as systemic the threatening. That's banks then that would seem to be in fat -- that's justifiable concern and obviously it's said by AIG is. Been designates this way the kind of obvious political reasons as well as the credential which is this is already go this that nations. But you know the it's it's kind of it's it's a tricky one to fight we saw this with Jamie Dimon JPMorgan and the credibility for awhile. They said it sort of fighting the Fed and bank of candidates to be furious -- -- is a great example from 2000 and I think nine moments he was attacking. The ideas of -- but moment to top what action the top is very capable of off of banks and it suddenly a lot more things of that home. To what we're -- more a -- for the banks off they took the money. He called it top baby called this column let's he then -- the same as he stood up and and and ranked. Ben Bernanke with a question back how to judge will these rules because of banks and articles he has the currency crises firstly. That is does on the well treaty is an and he has leased the legal costs right now and -- and ugly. -- looking were they silly but it looks like exact it's a great example where I can throw one mile. You might be in the top of the week fourteen as -- done well but you can see signs of respects it was -- -- over the bottom and that if he made some pretty bold statements is gonna come back we'll slip back to MetLife what's the right course that there are some. Less good and some good reasons to be with a worried about this designation but is it worth -- Why is let's find to a certain extent and you wanna be out SP be seen to agitate and and -- hoping to get -- to get the rules -- certified and that there is already I think the rules and has been passed in the senate. -- an idea of changing this is that it shows don't get it with the same kind of rules as banks. Go to gets the house madness that's -- and achieve big election. You content wanna be out there is just insane suing the government is physically and mean it you might win but you Ricky wanna go that hasn't missed that. Let it may be better to try the lobbying process he went activities -- in the meantime you kind of keep -- -- -- that has its. It will livid that thanks -- we'll live we'll see if we yet. Steve can it becomes absolutely don't know at what level breaking news views.

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Breakingviews: Have you MetLife's CEO?

Friday, August 01, 2014 - 03:42