Does this MetLife decision by the federal court represent a bad precedent for the regulation of financial institutions? Why or why not?
Background:
On 3/31/2016, The Wall Street Journal reported on its front page that a federal judges decision had curbed oversight of MetLife as a systemically important financial institution (SIFI). Regulators apply this SIFI designation to large banks and other financial institutions that are considered as being too big to fail (TBTF) and, thus, must comply with tougher rules on capital and the use of borrowed money to reduce their risks. This federal court decision is considered by some to represent a scaling back of the Dodd Frank Act of 2010. A copy of a related, WSJ article will be provided during our FE 442 class session on 4/4/2016. Also, see M&E pages 442 through 445.
Prepare a written response to the following two questions: Does this MetLife decision by the federal court represent a bad precedent for the regulation of financial institutions? Why or why not?
