(Bloomberg) – The U.S. government panel that decided MetLife Inc. was too big to fail erred by not evaluating the insurer's vulnerability to financial distress, according to the federal judge who rescinded that designation last week.
That finding was one of several underpinning U.S. District Judge Rosemary M. Collyer's March 30 legal opinion which was unsealed Thursday. Collyer had previously issued just a two-page order stating her conclusion and offering only bare indications for its basis.
Collyer said in her opinion that the Financial Stability Oversight Council's action was "arbitrary and capricious" and that the panel didn't follow its own guidelines in concluding that MetLife was a threat to financial stability.
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