NEWARK, N.J. (AP) — Insurer Prudential Financial said Friday it won't try to get regulators to reverse a decision that it is one of a group of financial companies so big that they could threaten the financial system if they were to fail.
In July the Financial Stability Oversight Council said Prudential was one of a group of companies whose failure would represent too much risk to the financial markets. The companies are subject to stricter scrutiny and Federal Reserve supervision as a result of the decision. Prudential appealed the decision and regulators ruled against it in September.
Other companies that received the designation included insurer American International Group Inc. and GE Capital, General Electric Co.'s finance arm.
Prudential Financial Inc. operates retirement and investment management businesses, as well as individual life and group insurance coverage, and has over $1 trillion in assets under management. For 2012, the Newark, N.J., company's financial services businesses reported net income of $428 million on revenue of $81.13 billion. It added The Hartford's individual life insurance business in January.
Shares of Prudential Financial rose 27 cents to $82.53 on Friday and were unchanged in after-hours trading.
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Original headline: Prudential drops challenge to gov't oversight
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