Prudential Says Fed Oversight of Insurers Is Science Fiction
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Prudential Financial Inc. said new global rules for financial firms won’t work and the Federal Reserve’s revised mandate to potentially oversee insurers is science fiction.
Prudential Vice Chairman Mark Grier told analysts today that Solvency II and Basel III, the insurer and bank standards being readied by European regulators, will fail in a crisis. In remarks about the Fed’s expanded role, Grier said he refers to systemically important financial institutions, or SIFIs, as “sci-fi,” which is short for science fiction.