In a Fox Business Network Exclusive, Anchor Maria Bartiromo (Mornings With Maria 6AM ET) is reporting that MetLife (NYSE:MET) is bolstering its suit against the Financial Stability Oversight Council (FSOC) by further challenging its "Too Big Too Fail" status.
According to the June 16 filing, MetLife is reiterating its stance to a federal judge, seeking to have its "too big to fail" designation overturned. The filing comes in response to a May filing by the government seeking a dismissal of the entire case -- and MetLife's desire to overturn its "systemically important" status. Amicus briefs, which come from those not party to the case, in support of MetLife are due June 26, and FSOC’s response on July 31.
In short, MetLife says that the FSOC acted as judge, jury and executioner in determining a "Too Big Too Fail" status and offered no avenue for MetLife to obtain a fair and full hearing on the issue.
The filing comes on the heels of a federal judge’s ruling that the government went beyond its authority in demanding an equity stake while bailing out Maurice "Hank" Greenberg's American International Group (NYSE:AIG)
The ruling was a moral victory for the former AIG CEO, and lays the groundwork for more companies like MetLife to challenge the designation of a Global Systemically Important Bank , a key provision of Dodd-Frank.
Bartiromo reports that the Hank Greenberg ruling has empowered several executives in the financial services industry to push back on some of the unintended consequences of Dodd-Frank. Sources close to MetLife tell Bartiromo the conversation in board rooms has now shifted opening up a debate on whether the pendulum has swung too far in terms of regulation. MetLife and others including Prudential (NYSE:PRU) are empowered to push back and question a systemically important determination.