AIG: Gov't may subject firm to greater oversight
WASHINGTON (AP) — The government is considering whether American International Group is large enough to threaten the broader financial system, a designation that would subject the bailed-out insurance giant to greater federal oversight.
AIG said Monday that it has received a notice from the Financial Stability Oversight Council saying it may be designated a systemically important financial institution. If it receives the label, AIG would be regulated by the Federal Reserve and required to hold a larger capital cushion against losses.
AIG received a $185 billion government bailout, the largest provided to a single company.
The council was created by the 2010 financial regulatory overhaul.