(MENAFN- AFP) US regulators on Friday named insurer Prudential Financial to its list of "too-big-to-fail" institutions, the third non-bank placed under a tighter regulatory regime to reduce risks to the financial system.
The Financial Stability Oversight Council's move subjects Prudential to tougher oversight and capital standards also applied to the country's largest banks.
FSOC "determined that material financial distress at this company -- if it were to occur -- could pose a threat to US financial stability," the agency said, stressing that there were no signs at the moment that Prudential had any trouble.
Designating financial institutions as large enough to pose systemic threats -- so-called "too-big-to-fail" companies -- "is an important tool to mitigate risks posed by those companies, fill gaps in their overall supervision, and provide enhanced standards under which they must operate," FSOC said.
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