An insurance analyst says recent action by the Federal Reserve Board regarding MetLife and its bank implies the Fed may be rethinking the use of bank metrics in regulating insurance companies.
"I don't believe the Fed intends to force insurance companies into the bank stress test model and metrics without at least some adjustments to reflect some of the key differences in their business models (duration of liabilities, lower liquidity risk, etc.)," concluded John Nadel of Sterne Agee & Leach, Inc., New York.
He made his comments through an investor's note prompted by the MetLife securities filing indicating that the Fed has granted its request for an extension through Jan. 5, 2013 of its need to refile data related to the 2012 stress test that MetLife underwent.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
