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Regulatory council tags Prudential Financial

Sept. 20, 2013 at 1:05 PM

WASHINGTON, Sept. 20 (UPI) -- A committee of U.S. finance regulators said it had designated Prudential Financial Inc. as a non-bank company in need of central bank supervision.

The Financial Stability Oversight Council created by the Dodd-Frank Act is designed to seek out companies that could, if they fail, threaten the U.S. financial system or its economy.

Prudential is the third company the committee decided required central bank oversight. American International Group and General Electric Capital Corporation have already been absorbed into the regulatory system that generally focuses on banks.

The council said in a statement that the decision to supervise Prudential was not meant to suggest it was in financial difficulty.

"This does not constitute a determination that the company is currently experiencing material financial distress," the statement said.

"The Council has taken another important step to address threats to U.S. financial stability and the broader economy," Treasury Secretary Jacob Lew said in a statement.

"The Council will continue to use critical new tools it has to monitor and address threats to U.S. financial stability and protect the broader economy from the types of risk that contributed to the financial crisis," said Lew, who is chairman of the council.

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