Prudential Financial Inc. could shed the nonbank “systemically important financial institution” (SIFI) label that the U.S. government slapped on it after the 2008 financial crisis as soon as next week, according to a person familiar with the matter.
The Financial Stability Oversight Council has been considering freeing the Newark, New Jersey-based insurer from the heightened oversight that comes with being “too big to fail” for months. A vote on the matter might come Tuesday, when the panel is scheduled to meet in Washington, said the person who asked not to be named because a decision hasn’t yet been announced.
FSOC, whose members include the leaders of the Treasury Department, Federal Reserve and Securities and Exchange Commission, designated Prudential as a nonbank SIFI in 2013. It’s the only nonbank that still carries the label after regulators freed insurers American International Group Inc. and MetLife Inc., as well as General Electric Co.’s financial unit, from the designation in recent years.
The agenda for FSOC’s meeting next week says members plan “an update on the annual reevaluation of the designation of a nonbank financial company.”
A Treasury spokeswomen didn’t immediately return a request for comment, while a Prudential spokeswoman declined to comment.