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Prudential Will Not Appeal FSOC’s “Systemic” Designation

Prudential Financial has decided not to ask a federal court to overturn a designation by the U.S. Financial Stability Oversight Council (FSOC) that will subject the company to strict capital requirements and oversight by the Federal Reserve...
October 31, 2013

Prudential Financial has decided not to ask a federal court to overturn a designation by the U.S. Financial Stability Oversight Council (FSOC) that will subject the company to strict capital requirements and oversight by the Federal Reserve. “The company will continue to work with the Board of Governors of the Federal Reserve System and other regulators to develop regulatory standards that take into account the differences between insurance companies and banks, particularly in the use of capital,” the company said on Oct. 18. Prudential is one of only three non-bank financial firms so far to be hit with the costly "systemically important financial institution" (SIFI) tag. The other two companies, AIG International and GE Capital, also did not appeal.

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