Reuters logo
TEXT-Fitch: MetLife continues its bank withdrawal
April 27, 2012 / 4:00 PM / in 6 years

TEXT-Fitch: MetLife continues its bank withdrawal

April 27 - Fitch Ratings believes MetLife's move to exit the
reverse-mortgage business and the company's strategy to depart from the banking
business via a shedding of its bank holding company units are line with our
expectations.	
	
We believe the company's latest move has no ratings impact and no material 	
impact on future stress testing results via the Federal Reserve.	
	
In a statement Thursday, MetLife said it is no longer accepting applications for	
reverse mortgages and has agreed to sell its reverse-mortgage servicing 	
portfolio to Nationstar Mortgage LLC, subject to regulatory approval. The move 	
will allow MetLife to emancipate itself from stringent government regulation 	
regarding the use of capital.	
	
Without disclosing specific results of its reverse-mortgage portfolio, MetLife 	
said its entire retail banking business represented less than 2% of its 	
operating earnings for 2011, underscoring our view that financial impact will be	
immaterial as a function of the company's retreat from banking.	
	
The insurer had previously announced agreements to sell its deposit business to 	
GE Capital and its warehouse finance business to EverBank. 	
	
However, despite MetLife's continued strategic dismantling of its bank holding 	
company structure, the insurer may once again be subject to government scrutiny 	
regarding capital deployment when the Fed reveals later this year which 	
non-banks are classified as systemically important financial institutions 	
(SIFIs). We maintain our view that it is reasonable to expect MetLife may be 	
designated as a SIFI based on Federal Reserve criteria, but note that final 	
placement remains uncertain.	
	
Additional information is available on www.fitchratings.com.	
	
The above article originally appeared as a post on the Fitch Wire credit market 	
commentary page. The original article, which may include hyperlinks to companies	
and current ratings, can be accessed at www.fitchratings.com. All opinions 	
expressed are those of Fitch Ratings.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below