FSOC - Prudential

  • 2013 0909 - FSOC/Prudential - Resolution Approving Final Deterministation Regarding Prudential Financial Inc. (Woodall, Huff, Edward J. DeMarco, Acting Director, Federal Housing Finance Agency) - The Chair of the Securities and Exchange Commission recused herself from the vote. - 23p
  • 2013 0919 - FSOC/Prudential - Basis for the Financial Stability Oversight Council’s Final Determination Regarding Prudential Financial, Inc. - 12p
  • 2015 1230 - FSOC/Prudential - Prudential Financial, Inc. 2015 Resolution Plan - 58p
  • 2018 1016 - FSOC/Prudential - Prudential Financial, Inc. (Rescission) - 66p
    • 2018 1016 - Views of the Director of the Federal Housing Finance Agency (Melvin L. Watt, Director) - 1p
  • (p13-14) - Chairman Jeb HENSARLING (R-TX). Under Section 113(a)(2) of Dodd-Frank, there are 11 different factors you are to consider in making your designation.
    • With respect to the Prudential decision, to what extent did the leverage of the company play a role in your decision to designate it a SIFI?
  • Ms. MATZ. It was the combination.
    • We were briefed extensively on the financial—
  • Chairman HENSARLING. I’m sorry. Briefed by whom?
  • Ms. MATZ. Briefed by the FSOC staff and the NCUA staff that works with them, that participates with them—
  • Chairman HENSARLING. So does the NCUA staff have expertise in insurance company leverage?
    • What was the specific leverage of Prudential that caused you concern?
  • Ms. MATZ. No. The determination wasn’t based on the insurance activities.
    • It was based on the financial activities of the company and how they are interwoven with other—
  • Chairman HENSARLING. And specifically, which activities were interwoven that concerned you?
  • Ms. MATZ. It was their derivatives position, the extent of their leverage. Their—
  • Chairman HENSARLING. But I asked you about the leverage.
  • Ms. MATZ. The securities lending. Their debt position. The extent of the difficulty to resolve them if there was financial distress.  So, it was not one factor.

2015 1208 - GOV (House) - Oversight of the Financial Stability Oversight Council - [PDF-146p, VIDEO-YouTube] --- [BonkNote]