WASHINGTON (Reuters) – A U.S. regulatory council announced on Wednesday it had removed the systemically risky label from Prudential Financial (PRU.N), freeing the insurance company from more rigorous oversight by the Federal Reserve.
A security guard is silhouetted in front a Prudential office in London March 1, 2010. Britain’s Prudential said it would buy AIG’s Asian life insurance arm for $35.5 billion, in a deal set to make the insurer the undisputed leader in one of the world’s fastest-growing financial services markets. REUTERS/Luke MacGregor (BRITAIN – Tags: BUSINESS)
The decision by the Financial Stability Oversight Council could cut regulatory costs at Prudential, which no longer will have to meet enhanced capital and liquidity standards and comply with Fed regulators.
“We are pleased with this decision, which affirms our longstanding belief that Prudential never met the standard for designation,” the company said in a statement.
Reporting by Pete Schroeder; Editing by Susan Thomas