U.S. court puts Metlife 'too big to fail' case on indefinite pause

Reuters News
Posted: Aug 02, 2017 5:17 PM

WASHINGTON (Reuters) - A U.S. appeals court on Wednesday decided to put the federal government's appeal in a lawsuit involving MetLife Inc. on indefinite pause to allow time for Treasury Secretary Steven Mnuchin to finish reviewing how the government determines non-bank financial institutions like the insurer are "too big to fail."

Last year, U.S. District Judge Rosemary Collyer rescinded the government's designation of MetLife, the country's largest life insurer, as "systemically important," a label that indicated it could devastate the financial system if it fails and which triggered heightened oversight. The administration of former President Barack Obama, a Democrat, appealed the decision.

Since then, President Donald Trump, a Republican, has ordered Mnuchin to review the designation process. In Wednesday's filing, the appeals court said the case "remains in abeyance pending further order of the court," and asked both parties to file motions on how the case will proceed by Nov. 17 or within 30 days of the issuance of the report, whichever is earlier.

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(Reporting by Lisa Lambert; Editing by Sandra Maler)