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The Dodd-Frank Act gives regulators the authority to place insurance companies and other non-bank financial institutions under Fed supervision if they are large enough to pose systemic risk to the financial system.
Companies such as New York-based MetLife Inc argue that their businesses aren’t suited to bank-like regulation in part because their liabilities are in the form of policies rather than short-term deposits.
In a written response to questions from Louisiana Republican Senator David Vitter, Yellen pointed out that Dodd-Frank does not permit regulators to apply minimum capital requirements that are lower than those for banks.
“The Board continues to carefully consider how to design capital rules for Board-regulated companies that are insurance companies", Yellen wrote in her response.