MetLife (MET) Caught in Limbo
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Shares of MetLife, Inc. (NYSE: MET) trailed the market Thursday as reports out of Sterne Agee pointed to the life insurance company possibly not being able to return capital to shareholders due to regulatory hang-ups.
MetLife may have to resubmit a plan for share buybacks and dividends to the Federal Reserve, which has oversight of MetLife. The central bank rejected the company's plan to raise its dividend and buy back shares in October 2011, pending stress testing, and rejected it again in March after certain ratios were below the test's thresholds.
A MetLife spokesman said the company remains in discussions with the Fed about how to proceed with the pending sale of its bank's deposit-taking operations to General Electric's (NYSE: GE) GE Capital unit.
If MetLife did not buy back stock, 2013 expected earnings per share would be cut by nearly 5 percent, said analyst John Nadel.
MetLife may have to resubmit a plan for share buybacks and dividends to the Federal Reserve, which has oversight of MetLife. The central bank rejected the company's plan to raise its dividend and buy back shares in October 2011, pending stress testing, and rejected it again in March after certain ratios were below the test's thresholds.
A MetLife spokesman said the company remains in discussions with the Fed about how to proceed with the pending sale of its bank's deposit-taking operations to General Electric's (NYSE: GE) GE Capital unit.
If MetLife did not buy back stock, 2013 expected earnings per share would be cut by nearly 5 percent, said analyst John Nadel.
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