Seeking Alpha

MetLife (MET -0.5%) shares lagged the market as Sterne Agee noted the life insurance company may...

MetLife (MET -0.5%) shares lagged the market as Sterne Agee noted the life insurance company may be unable to return capital to shareholders due to regulatory hang-ups. The Fed twice has rejected MET's plans to raise its dividend and buy back shares; if MET can't do the buyback, the firm says expected 2013 EPS would be cut by nearly 5%.
Comments (2)
  • Tom Armistead
    , contributor
    Comments (5367) | Send Message
     
    Typical bank regulation, they let Jamie Dimon do whatever he pleases, then they count coup on a life insurance company that went through the financial crisis with flying colors, and emerged with the financial strength to buy AIG's ALICO from a combination of retained earnings and capital raised in the open markets.

     

    Of course FDIC puts off reviewing their sale of bank assets to GE Capital, basically just to keep MetLife under their thumb as long as possible.

     

    MetLife has made no secret of their disagreement with the Fed's approach, which is totally bank centric and betrays a lack of understanding of the insurance business, not to mention an unwillingness to learn anything about it.

     

    Insurance has been regulated by the states for over 100 years, with excellent results, particularly when compared to how OTS supervised AIG. Remember that one? State regulators would not have permitted AIG to write CDS (credit insurance) without adequate capital and under inappropriate terms of coverage. So AIG opted for the toothless (and now defunct) OTS, a bank regulator, or more accurately, enabler.
    14 Jun 2012, 05:36 PM Reply Like
  • Cheese Head
    , contributor
    Comments (213) | Send Message
     
    "MetLife has made no secret of their disagreement" . . . sadly this may be part of the problem, you get more with honey than vinegar . . . long MET & PRU & AFL.
    18 Jun 2012, 09:30 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector