Prudential Says Regulators Reject Appeal of Risk LabelZachary Tracer and Ian Katz
Prudential Financial Inc., the No. 2 U.S. life insurer, failed to dissuade federal regulators from keeping the company on a list of firms that will get extra scrutiny to protect the financial system.
“We are currently reviewing the rationale for the determination and our options,” Prudential said in a statement today.
Prudential was the first U.S. company to contest the designation as a non-bank systemically important financial institution. The insurer can still challenge the finding in federal court, Newark, New Jersey-based Prudential said in the statement.
Prudential joins American International Group Inc. and General Electric Co.’s finance unit in receiving the risk label. Neither AIG nor the GE unit contested the designation. The firms will be regulated by the Federal Reserve under the Dodd-Frank Act, which increased scrutiny of the largest U.S. financial firms to help avoid a repeat of the 2008 bailouts.