MetLife Inc., a holding corporation for the Metropolitan Life Insurance Company, has witnessed victory on Wednesday in its battle against US regulators. The ruling may pose far reaching impact over the country's financial system.

The US regulators have acted unlawfully deciding the insurance group deserving tougher regulations as a 'systematically important financial institution' (SIFI), observes a Washington court. The ruling appears as a huge blow to the Obama administration. However, the government is allowed to appeal against the ruling, reports Financial Times.

The court ruling may also be significant for two of MetLife's biggest rivals- Prudential Financial Inc. and American International Group Inc. The federal regulators have also labeled both of them as systematically important unlike MetLife. Referring the MetLife ruling, both of them are expected to consider challenges against the labeling decision, predict analysts, according to a report published in The Wall Street Journal.

The federal regulators have labeled a number of banks and other financial institutions with 'systematically important' tags. Authorities have acted so arguing that failure of those SIFIs may exert threat to the stability of the US economy. The lone non-financial institution receiving the title is General Electric Co., reports MarketWatch.