MetLife may sell bank to escape Dodd-Frank

MetLife Inc., the biggest U.S. life insurer, is exploring the sale of its deposit-gathering business to avoid the tighter regulation that comes with bank status. “We do not believe it is appropriate for the overwhelming majority of our business to be governed by regulations written for banking institutions,” Chief Executive Officer Steven Kandarian said today a statement. MetLife is seeking to avoid stronger federal oversight imposed on banks after government bailouts in 2008 prompted Congress to increase regulation through the Dodd-Frank act. New York-based MetLife, which opted against accepting U.S. Treasury Department capital, said it gets about 2 percent of its operating earnings from its banking unit. “In a highly competitive global insurance marketplace, it is imperative that MetLife be able to operate on a level playing field with other insurance companies,” Kandarian said. MetLife said the business that may be sold includes savings accounts, certificates of deposits and money-market accounts. The insurer plans to continue lending through its residential mortgage business. MetLife Bank began in 2001 and expanded through acquisition in 2008. --Bloomberg News--