U.S. Says A.I.G. Is No Longer ‘Too Big to Fail’ 9 Years After Bailout
- 7 years ago
U.S. Says A.I.G. Is No Longer ‘Too Big to Fail’ 9 Years After Bailout
Mr. Mnuchin said in a statement that the removal of A. I.G.’s “too big to fail” label “demonstrates our commitment
to act decisively to remove any designation if a company does not pose a threat to financial stability.”
The government’s action is the latest step by the Trump administration to relax the oversight of major companies.
WASHINGTON — A group of federal regulators voted Friday to no longer classify the American International
Group as “too big to fail,” freeing the giant insurer from years of tough government oversight.
The Financial Stability Oversight Council, a group of regulators led by Treasury Secretary Steven Mnuchin, voted 6 to 3 to release A. I.G.
In an effort to prevent a repeat of the crisis, the Dodd-Frank law of 2010 empowered regulators to designate certain
nonbank financial institutions as “systemically important” and subject them to more intensive supervision.
Three regulators who were appointed by President Barack Obama voted against relieving A. I.G.
and other companies that received the label have fought to shed it, arguing
that they aren’t big or interconnected enough to imperil the broader financial system if they run into problems.
Mr. Mnuchin said in a statement that the removal of A. I.G.’s “too big to fail” label “demonstrates our commitment
to act decisively to remove any designation if a company does not pose a threat to financial stability.”
The government’s action is the latest step by the Trump administration to relax the oversight of major companies.
WASHINGTON — A group of federal regulators voted Friday to no longer classify the American International
Group as “too big to fail,” freeing the giant insurer from years of tough government oversight.
The Financial Stability Oversight Council, a group of regulators led by Treasury Secretary Steven Mnuchin, voted 6 to 3 to release A. I.G.
In an effort to prevent a repeat of the crisis, the Dodd-Frank law of 2010 empowered regulators to designate certain
nonbank financial institutions as “systemically important” and subject them to more intensive supervision.
Three regulators who were appointed by President Barack Obama voted against relieving A. I.G.
and other companies that received the label have fought to shed it, arguing
that they aren’t big or interconnected enough to imperil the broader financial system if they run into problems.