WASHINGTON — The Federal Reserve will vote next week on whether to publish a blueprint for capital requirements for insurance firms under its supervision and insurance companies designated as systemically risky.
The Fed board on Friday issued a notice of an open meeting on June 3 to consider an advance notice of proposed rulemaking — a sort of pre-proposal– outlining the agency’s approach to capital requirements for regulated institutions "significantly engaged in insurance activities" and insurance companies designated as systemically important financial institutions by the Financial Stability Oversight Council.
Fed Gov. Daniel Tarullo, who heads the board’s supervisory committee,
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In his first public remarks this year, Federal Reserve Gov. Daniel Tarullo offered a preview of the enhanced capital and liquidity requirements that certain insurers will soon face.
May 20 -
In a ruling that was unsealed Thursday, D.C. District Court Judge Rosemary Collyer upbraided the Financial Stability Oversight Council for disregarding its own rules in its decision to designate the insurer MetLife as a systemically risky nonbank.
April 7 -
GE Capital has formally asked the Financial Stability Oversight Council to review and rescind its designation as a systemically important financial institution, setting in motion a highly anticipated process that has not yet been tried by a designated firm.
March 31
Three insurance companies have been designated as SIFIs by the oversight council — Prudential, American International Group and MetLife. MetLife last year challenged its designation in court and had it
As for insurance firms that count banks or thrifts among their affiliates, Tarullo proposed a "building-block approach," which would effectively require a firm’s affiliates to comply with their lead regulator’s capital rules individually. This would preserve a state or foreign regulator’s oversight over a firm’s affiliates while preserving the Fed’s oversight role over the firm as a whole.