Yellen Says Fed to ‘Carefully Consider’ SIFI Rules for Insurers

Federal Reserve Vice Chairman Janet Yellen said the central bank will “carefully consider” how to apply new regulatory standards to insurance companies that fall under the central bank’s supervision.

The Dodd-Frank Act gives regulators the authority to place insurance companies and other non-bank financial institutions under Fed supervision if they are large enough to pose systemic risk to the financial system. Companies such as New York-based MetLife Inc. argue that their businesses aren’t suited to bank-like regulation in part because their liabilities are in the form of policies rather than short-term deposits.