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A.M.BestTV: Treasury Secretary Says Firms Can Challenge and Exit Systemically Important Financial Institution Designation


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FOR IMMEDIATE RELEASE

OLDWICK - MARCH 27, 2015 03:26 PM (EDT)
This A.M.BestTV episode examines a recent U.S. Senate hearing at which U.S. Treasury Secretary Jack Lew told U.S. lawmakers that being designated a Systemically Important Financial Institution (SIFI) does not have to be permanent. However, representatives for insurance companies say the process is too focused on designating companies as systemic, and argued that the Financial Stability Oversight Council has yet to outline the activities it views as the most risky.

At the Senate Banking Committee hearing, Lew stated, "Each year the Treasury Department has an annual review of a designated firm, and if that firm has changed its business model or structure, which causes its risk issues to change, it could create a removal of that company's designation."

However, Gary Hughes, executive vice president & general counsel of the American Council of Life Insurers, argued that obtaining that change in designation is unlikely.

Click here to view the entire video program: http://www.ambest.com/v.asp?v=fsoc315 .

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