Thursday, February 25, 2016

#TooBigToFail, insurance-style

So this headline caught my attention:

MetLife in talks with MassMutual for premier client deal

Briefly, Met's looking at spinning off its US advisor force, which caters to "middle- to upper-income consumers, including small-to-medium sized company executives and small business owners."

Intriguing, yes, but (way) outside my wheelhouse, so I called on my resident guru of all things "advisorish" FoIB Jeff M:

"Hey Jeff, I have a feeling this is important, but I don’t really understand it. Help?"

As usual, he jumped right into the fray, explaining:

"A week or so ago, the Feds declared Met as "too big to fail" thereby telling them..."You need to sell some of your business 'cause if one of your business units fails, it will cause grave harm to the US economy." Therefore and henceforth, Met is talking with Mass about Mass buying Met's life business.



Of course, there's a shorter version, as well:

"Nice business ya got here, be a shame somethin' were to happen to it...."

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