This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MetLife Hedges Its Way onto a Perilous Path

Part of that story involved the federal government ushering MetLife closer to "too big to fail" status. Financial regulators use nicer terms like "systematically important" as a working euphemism.

Whatever the regulators call it, this puts MetLife under tighter government scrutiny. No company wants to be on the Fed's radar screen, and the management of MetLife protested the government's increasing oversight.

Of course that's not even close to a "natural disaster." But net derivative losses of $1.69 billion when compared to the year-ago quarter's net derivatives gains of around $2.09 billion is no small setback.

In the positive news category MetLife and SunTrustBanks (STI) announced in a press release on Aug. 5 that SunTrust will finance commercial real estate mortgages originated and managed by MetLife Real Estate Investors.

Did you know about that newly created commercial real estate division of MetLife? It was news to me as well, and it includes a good size loan from SunTrustBanks to MetLife's new platform!

The loan is to be structured over three years with a possible total investment from SunTrust of up to $5 billion, subject to approval of each loan. The press release said that the structured loan "... reinforces SunTrust's commitment to commercial real estate."

"We welcome SunTrust as a client and partner as it brings strong regional and national expertise that complements our long-standing real estate investment heritage," said Steven J. Goulart, executive vice president and chief investment officer of MetLife.

Goulart said, "This unique partnership supports our larger strategy to provide innovative and reliable investment vehicles to our clients."

He was referring to MetLife's recent launching of an institutional asset management business to "... leverage its capabilities to invest on behalf of institutional clients."

The new business venture builds upon the company's confidence in its expertise and past success in originating both commercial mortgages and private placement debt.

It also introduces to more analysts and investors MetLife's experience with investing in real estate equities. With today's very low interest rates and with real estate recovering this may be a very smart idea.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs