WASHINGTON (Reuters) - The U.S. government on Friday appealed a court decision that major insurer MetLife cannot be considered “too big to fail” in the United States Court of Appeals for the District of Columbia, according to a filing.
U.S. Treasury Secretary Jack Lew had said he strongly disagreed with the decision and the government would vigorously defend the work of the Financial Stability Oversight Council (FSOC), made up of several U.S. regulatory agency chiefs, which designated MetLife as a systematically important financial institution in 2014. The designation triggers additional oversight and capital requirements.
“We plan to vigorously defend Judge Collyer’s carefully reasoned opinion,” said Chris Stern, a spokesman for MetLife.
MetLife sued the U.S. government last year, saying FSOC used a secretive, flawed process in determining that it could hurt the U.S. financial system if it faces financial distress. On March 30, U.S. District Judge Rosemary Collyer rescinded the designation.
Reporting by Lisa Lambert; Editing by Diane Craft