“While distress at these firms poses risks to financial stability, particularly during a stressful period, certain sources of risk to these firms are distinct from the risks banking organizations face,” Federal Reserve Vice Chairman Stanley Fischer said on Wednesday.
These three insurance behemoths designated by U.S. regulators as non-bank systemically important financial institutions–Prudential, MetLife and AIG– could put the economy at serious risk if they failed.
The US central bank has been conducting stress tests for five years on bank holding companies with at least $50 billion in assets.
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