Government Removes AIG’s “Systemically Important” Label: Reading the Tea Leaves

On September 29, the Financial Stability Oversight Council (FSOC) removed AIG’s designation as a systemically important financial institution (SIFI), relieving it of significant regulatory burdens, such as stress testing by the Fed and high capital requirements. FSOC is the chief regulator of systemic risk put in place by the Dodd-Frank Act. In its own words,…

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