Prudential Financial Inc., the No. 2 U.S. life insurer, is contesting a U.S. finding that it poses a potential risk to the financial system, becoming the first company to challenge the tag that brings additional oversight.
Prudential requested a hearing to explain why it shouldn’t be considered a systemically important financial institution, or SIFI, the Newark, New Jersey-based company said Tuesday in a regulatory filing.
Chief Executive Officer John Strangfeld is pursuing a different course than the leaders of American International Group Inc. and General Electric Co.’s finance unit, which each said Tuesday that they won’t contest SIFI status.
The three companies said June 3 that they were identified by the Treasury Department’s Financial Stability Oversight Council as potential risks to the economy. They were given until Wednesday to appeal.
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