Prudential Gets Chance to Sound Off on ‘Systemic’ Label
By Donna Borak
Prudential Financial pleaded with regulators Tuesday to be kept off the list of risky nonbank financial companies that will be supervised by the Federal Reserve Board, but the company’s appeal is still a long shot. The Financial Stability Oversight Council, an interagency group that decides which nonbanks fall under the new Fed supervision regime mandated by the Dodd-Frank Act, granted Prudential a closed-door hearing to let the insurance giant state its case. Global regulators’ decision “puts Prudential in a corner when it comes out fighting with the FSOC,” said Karen Shaw Petrou, a managing partner at Federal Financial Analytics Inc.