WASHINGTON — The Federal Reserve Board said Friday that it will soon propose two-tier capital requirements for the insurers it oversees: one for insurers deemed systemically risky, and another for insurers it oversees because they operate thrift holding companies.
Washington Analysis, which interprets federal regulatory rules for institutional investors, said the forthcoming guidelines will create "manageable capital rules" for American International Group and Prudential Financial, two institutions it oversees as systemically important financial institutions (SIFI). Therefore, it would reduce the "regulatory uncertainty that continues to hang over the group," said analyst Ryan Schoen.
The risk-weightings are not likely to be as onerous as they are for banks, as regulators recognize the longer-term nature of most insurance liabilities, Schoen said.
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