The new U.S. risk council has moved closer to deciding whether Prudential Financial is "systemically important," a Prudential spokesman said on Friday, a tag that would translate into greater regulatory scrutiny for the second-largest U.S. life insurer.
The 2010 Dodd-Frank law gave the Financial Stability Oversight Council (FSOC), which is chaired by Treasury Secretary Timothy Geithner, the power to name large non-bank financial firms with the "systemically important" tag if it feels their collapse could send shock-waves through the U.S. financial system.
Any company named a systemically important financial institution, or "SIFI," will be subject to extra regulatory oversight from the Federal Reserve.
Prudential has received notice that FSOC moved the company to the third level of the evaluation process, spokesman Scot Hoffman said.
"The company plans to continue its ongoing discussions with regulators about the differences between banks and insurance companies
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