Prudential Last of the Non-Banks to Shed ‘Too Big to Fail’ Tag
- FSOC decision could save insurer millions in annual costs
- AIG, MetLife and GE unit have already had designation lifted
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U.S. regulators agreed to drop Prudential Financial Inc.’s label as too big to fail, making it the last non-bank to escape a post-crisis designation that subjected firms to extra oversight.
The Financial Stability Oversight Council agreed in a Tuesday vote that the insurer doesn’t pose a special risk to the stability of the financial system, the Treasury Department said in a statement. The other non-banks that had been deemed systemically important financial institutions -- American International Group Inc., MetLife Inc. and General Electric Co.’s financial arm -- had been freed by FSOC over the past few years.