A securities analyst said it is unlikely that the Federal Reserve Board may force MetLife to raise more capital, a concern that has led investors to undervalue the stock.
In a note to investors Thursday, John Nadel of Sterne Agee said the recent underperformance of MetLife's stock relates to investor concern that the Federal Reserve Board may force it to resubmit the capital plan that failed in March.
Since MetLife would likely fail this stress test again, investors fear this could lead to the worst case scenario: a year's delay in MetLife's ability to raise its dividend or buy back stock, or perhaps a requirement to raise more capital.
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