×

UPDATE 1-U.S. court puts hold on 'too big to fail' case involving MetLife

(Adds Trump administration)

WASHINGTON, May 12 (Reuters) - A U.S. appeals court on Friday granted a 60-day abeyance in a case in which the country's largest life insurer, MetLife Inc, is challenging the federal government's labeling of it as "too big to fail."

More than a year ago, U.S. District Judge Rosemary Collyer struck down the government's designation of MetLife as "systemically important," which signifies it could devastate the financial system if it failed and triggers stricter oversight, saying the label was "arbitrary and capricious." The administration of former President Barack Obama, a Democrat, immediately appealed.

Republican President Donald Trump, however, has expressed skepticism about the designation process and the council of regulatory heads that assign the labels, and has ordered reviews of both.

Last week the council requested that the court put the appeal on hold for 60 days so that it could deliberate about the case. Previously MetLife had asked for an abeyance until the review was complete. (Reporting by Lisa Lambert and Lawrence Hurley; editing by Leslie Adler and Cynthia Osterman)