WASHINGTON — The Financial Stability Oversight Council fired another salvo late Thursday in an ongoing legal battle over its decision to designate MetLife as a systemically important financial institution.
The Obama administration argued in a brief to the U.S. District Court of Appeals that a ruling in March striking down the designation was "profoundly mistaken."
The FSOC, through the Justice Department, argued in the 98-page document that the designation had been issued in accordance with the council's "interpretive guidance" on 10 categories that should help assess a company's role in the U.S. economy.
The administration also argued that the FSOC is not obligated to factor in the costs of a systemically important designation to the targeted company when making its decision.
Specifically, the council argued that it is at liberty to interpret whether a "risk-related factor" should be taken into account.
"Congress allowed the council to take similar risk-related factors into consideration as it deems appropriate," the brief said.