FSOC Rescinds Prudential's Designation As Systemically Important Financial Institution

The Financial Stability Oversight Council ("FSOC") announced on October 17, 2018 that it has voted unanimously to rescind the designation of Prudential Financial Inc. ("Prudential") as a systemically important financial institution ("SIFI"). Prudential is currently the largest life insurance company and the seventh largest insurer and bank holding company in the United States. Due to the size, scope and complexity of its business, it was labeled a SIFI in 2013 and added to the list of nonbanks considered "too big to fail" – those whose collapse the Treasury Department believed could threaten the stability of U.S. financial markets. SIFIs are subject to strict supervision and oversight by the Federal Reserve. Pursuant to the Dodd-Frank Act, the FSOC must annually reevaluate the continued necessity of a SIFI-designation.