The Telegraph Herald on March 24, 2015, had an opinion piece by Cal Thomas on the problems being created for MetLife by the Dodd-Frank Act. Please take the time to read the article. Banks and people in finance have known that the new and improved Dodd-Frank Act was not good for the nation.
A provision of the Dodd-Frank Act allows the Financial Stability Oversight Council to designate companies “too big to fail.” As a result, it determines whether a company is subject to enhanced supervision. The FSOC has determined MetLife to be “too big to fail” and wants enhanced supervision of MetLife. MetLife is the largest life insurance company in the U.S. and, based on the audits by the states of the U.S., they have no financial problems.
MetLife has requested verification as to why it has received the designation. No answer by the Council as to the reason for the designation. MetLife filed a suit in the U.S. district court challenging the decision, but the Dodd-Frank Act exempts the FSOC from having to provide information for its decision.
This is an example of the separation of powers being destroyed by the government and the White House. The FSOC members serve as rule-maker, investigator, prosecutor, judge and jury.
I’m not an investigative reporter, but I see dollar signs as the reason for this investigation of MetLife. If the government can get them to roll over and pay a fine, the FSOC will then proceed to approach the other insurance companies in the U.S. and threaten to designate them as “too big to fail” and proceed to assess fines for their actions.
Please take the time to educate yourself as to what is happening. This will affect each of you because the future cost of insurance will include any fines that the government will assess. If you care, contact your representatives in Washington to change the law. If it is not changed, we will no longer be a democracy.