FSOC - MetLife - Run on the Bank
- Unlike countless banking products, insurance products are not designed to allow access to funds on demand, and often contain deterrents such as the policy limitations or penalties for early withdrawal. (p16)
Document 43 - MetLife v FSOC - Consent Motion of the National Association of Insurance Commissioners for Leave to File Brief as Amicus Curiae in Support of Plaintiff MetLife, Inc. - 32p
- 2015 0325 - GOV (Senate) - FSOC Accountability Nonbank Designations
- [PDF-165p, VIDEO-CSPAN]
- (p34 - 1:58:00)
- Richard Shelby (R-AL) - Would you discuss the likelihood of a so-called run on insurance products such as life insurance and what such a run would have to look like in order to cause systemic risk?
- Gary Hughes (ACLI) - I know one of the dissents to one of the designations pointed out, quite correctly, that insurance regulators have the absolute authority to prevent people from turning in their policies, if that is warranted.
- But I think the experience of the recent economic crisis is very telling in this respect.
- In fact, it was just the opposite of a run.
- The products were so desirable in terms of the guarantees they made that, notwithstanding the crisis, people were holding onto those products no matter what.