Prudential Insurance Group Gains SIFI Designation

The Federal Reserve designates some financial institutions as “Systematically Important Financial Institutions,” or as they are more commonly known, as “SIFIs.” While being named a “SIFI” might sound like an honor, it’s actually something that major financial institutions dread. The designation means that the Federal Reserve has deemed the institution so very important that, should the institution fail, the entire financial system could experience problems as a result. While being that important is nice, receiving the designation from the Federal Reserve means that the institution in question will be subject to upholding higher financial standards and receiving increased supervision and regulation from the Federal Reserve.

The latest of the financial services to join the SIFI ranks is Prudential Insurance Group. While most financial services that receive the designation simply grin and bear it, Prudential didn’t want to take the categorization lying down; it fought the designation but lost and has now officially joined the ranks of companies such as American International Group and GE Capital. Naperville residents who are interested in learning more about the designation and what it means are encouraged to contact Platinum Financial Associates.

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