Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  General Electric Company    GE

GENERAL ELECTRIC COMPANY

(GE)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

General Electric : MetLife's 'too big to fail' tag is 'arbitrary, capricious': U.S. judge

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/07/2016 | 08:01pm EDT
The MetLife building is seen in New York

WASHINGTON (Reuters) - Federal regulators' decision to designate insurer MetLife Inc (>> Metlife Inc) as "too big to fail" was "arbitrary and capricious," the U.S. judge who struck down the determination last month wrote in an opinion that was unsealed on Thursday.

WASHINGTON (Reuters) - Federal regulators' decision to designate insurer MetLife Inc (>> Metlife Inc) as "too big to fail" was "arbitrary and capricious," the U.S. judge who struck down the determination last month wrote in an opinion that was unsealed on Thursday.

The U.S. government plans to appeal the court decision, a Treasury spokesman said in a statement late on Thursday.

Treasury Secretary Jack Lew said he strongly disagreed with the decision and the government would vigorously defend the work of the Financial Stability Oversight Council (FSOC), made up of several U.S. regulatory agency chiefs, which designated MetLife as a systemically important financial institution in 2014.

The label has been given to four nonbank companies that the government considers would pose a risk to the financial system if they collapsed. MetLife, the largest U.S. life insurer, has said it was considering breaking up its business to shed the designation, which triggers more regulation.

"This decision leaves one of the largest and most highly interconnected financial companies in the world subject to even less oversight than before the financial crisis," Lew said in a statement earlier on Thursday. "I am confident that we will prevail."

MetLife sued the U.S. government last year, saying FSOC used a secretive, flawed process in determining that it could hurt the U.S. financial system if it faces financial distress. On March 30, U.S. District Judge Rosemary Collyer rescinded the designation, but her opinion was put under seal until Thursday.

FSOC said in its designation that the insurer could cause significant damage to the U.S. economy "but never explained how it would result," Collyer wrote.

"That assumption reflected a change in policy, one that was neither acknowledged nor explained in the final determination, and which was therefore arbitrary and capricious," she wrote.

She added that during the designation process, FSOC ignored two of its own definitions of "material financial distress" and "threat to the financial stability of the United States."

"FSOC also focused exclusively on the presumed benefits of its designation and ignored the attendant costs, which is itself unreasonable," Collyer wrote. "FSOC's unacknowledged departure from its guidance and express refusal to consider cost require the court to rescind the final determination."

Authority to designate U.S. nonbank companies as "too big to fail" is part of the Dodd-Frank Wall Street reform law passed after the 2008 financial crisis.

Last week lender GE Capital, a unit of General Electric Co (>> General Electric Company), asked to have its designation removed, saying it had shrunk to the point where it would not pose a threat to the financial system if it experiences distress.

Prudential Financial Inc (>> Prudential Financial Inc), another insurer, said it was "evaluating what is in the best interests of the company and our stakeholders."

American International Group Inc (>> American International Group Inc), which also has the label, received a $182 billion U.S. government bailout to avoid collapse in the thick of the financial crisis. AIG declined to comment on Collyer's decision.

Lew said FSOC takes "a deliberative and data-driven approach, relying on a careful analysis of available information, including intensive engagement with each company" it designates.

"In overturning the conclusions of experienced financial regulators, the court imposed new requirements that Congress never enacted, and contradicted key policy lessons from the financial crisis," he added.

(Additional reporting by Sarah N. Lynch and Eric Walsh in Washington; Editing by Matthew Lewis, Richard Chang and Diane Craft)

By Lisa Lambert

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GENERAL ELECTRIC COMPANY
06:22aDanaher to Sell Some Businesses to Sartorius for $750 Million
DJ
10/17Exxon, Trafigura tap lower shipping rates as U.S.-Asia arb reopens
RE
10/17CFM International Finalizes Order for 26 LEAP Engines With Vistara
DJ
10/17GENERAL ELECTRIC : GE's Cross-Fleet Solutions to Help Global Paper Provider Redu..
AQ
10/17GENERAL ELECTRIC : GECAS and IAI Launch the 777-300ERSF Freighter Program
AQ
10/16PREMIER : GE Healthcare, Premier Inc. Team on One-Stop Breast Cancer Center Mode..
DJ
10/16NEWS HIGHLIGHTS : Top Company News of the Day
DJ
10/16NEWS HIGHLIGHTS : Top Company News of the Day
DJ
10/15GENERAL ELECTRIC : GE positioned to deliver for U.S. Army's Future Vertical Lift..
AQ
10/15DAVID CALHOUN : Boeing Turns to a Crisis Pro to Lead Board -- WSJ
DJ
More news
Financials (USD)
Sales 2019 116 B
EBIT 2019 10 700 M
Net income 2019 3 394 M
Debt 2019 43 993 M
Yield 2019 0,47%
P/E ratio 2019 19,8x
P/E ratio 2020 17,0x
EV / Sales2019 1,04x
EV / Sales2020 1,08x
Capitalization 76 711 M
Chart GENERAL ELECTRIC COMPANY
Duration : Period :
General Electric Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GENERAL ELECTRIC COMPANY
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 10,78  $
Last Close Price 8,79  $
Spread / Highest target 59,3%
Spread / Average Target 22,6%
Spread / Lowest Target -43,1%
EPS Revisions
Managers
NameTitle
H. Lawrence Culp Chairman & Chief Executive Officer
Jamie S. Miller Chief Financial Officer & Senior Vice President
Victor Abate Chief Technology Officer & Senior Vice President
James J. Mulva Independent Non-Executive Director
William Geoffrey Beattie Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
GENERAL ELECTRIC COMPANY18.36%78 195
HONEYWELL INTERNATIONAL INC.25.32%118 305
3M COMPANY-14.40%93 828
SIEMENS AG2.45%87 791
ILLINOIS TOOL WORKS INC.24.96%51 210
HITACHI, LTD.46.16%36 819