Regulators have designated Prudential Financial Inc. as a risk to the financial system. The Newark, N.J.-based company is the third nonbank firm given the SIFI label.
The Dodd-Frank Act requires financial regulators belonging to the Financial Stability Oversight Council to name financial institutions that it believes are systemically important.
"Prudential now joins American International Group and GE Capital in facing a tougher set of supervisory standards and will be required to prepare and file a plan with regulators detailing how to safely unwind the company if it's on the brink of failure," writes American Banker's Donna Borak.
The company said it will take the next "30 days to consider its response to FSOC's determination. We are currently reviewing the rationale for the determination and our options." The FSOC, headed by Treasury Secretary Jacob Lew, declined to comment on its June decision to name the insurance firm as systemically risky.
For the full piece see "Prudential Named as Systemically Important Despite Firm's Objections" (may require subscription).