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A panel of U.S. regulators recommended that MetLife Inc. should be designated a systemic risk to the financial system. Such a decision is to subject the company – the largest life insurer by assets in the country, to tighter oversight by the Federal Reserve.

“MetLife strongly disagrees” with the Financial Stability Oversight Council’s move today, Chief Executive Officer Steven Kandarian said in a statement, which was cited by Bloomberg. As reported by the Wall Street Journal, Mr. Kandarian also added: “MetLife is not systemically important under the Dodd-Frank Act criteria. In fact, MetLife has served as a source of financial strength and stability during times of economic distress, including the 2008 financial crisis.”

Tougher government oversight, which has been proposed by regulatory authorities, would bring both the company and regulators closer to an eventual legal showdown. MetLife was proposed to be categorized as “systemically important” after a closed-door meeting.

This move by the regulators puts the insurer closer to joining its major competitors American International Group, GE Capital and Prudential Financial as firms designated systemically important financial institutions, which are subject to tighter oversight by the Federal Reserve. Prudential Financial was the only one of the three that appealed against the councils decision but still refused to start a lawsuit.

The FSOCs decision is a personal defeat for MetLifes Chief Executive Officer, who has been putting effort into avoiding the systemically important designation. Mr. Kandarian presented supporting documents in order to oppose the categorization.

“Today’s irresponsible and inappropriate designation of another U.S. business as too-big-to-fail only strengthens my resolve to reform the out-of-control FSOC,” U.S. Representative Scott Garrett, a New Jersey Republican, said in a statement cited by Bloomberg. “We must ensure taxpayers are not on the hook for FSOC’s dangerous regulatory overreach.”

MetLife Inc. fell by 0.29% on Friday to close at $55.26 per share, marking a one-year change of +14.17%. The company is valued at $62.15 billion. According to CNN Money, the 17 analysts offering 12-month price forecasts for Metlife Inc have a median target of $63.00, with a high estimate of $67.00 and a low estimate of $58.00. The median estimate represents a +14.01% increase from the last price of $55.26.

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