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Member, Beacon International Group, Ltd.
American International Group Inc. said Tuesday that it had received confirmation from the Financial Stability Oversight Council of its designation as a systemically important financial institution and the insurer “welcomes’’ the closer regulatory oversight.
A central feature of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the systemically important financial institution designation will subject New York-based AIG to extra scrutiny by the Federal Reserve Board.
AIG, bolstered with $182 billion of financial assistance from the federal government during the financial crisis in 2008, said in a statement that it did not contest the designation. The label means the government considers AIG too big to fail because its failure would harm the U.S. economy.
“After the close of business on July 8, 2013, AIG received notice from the U.S. Treasury that the Financial Stability Oversight Council has made a final determination that AIG should be supervised by the Board of Governors of the Federal Reserve System as a systemically important financial institution pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act,” according to AIG’s statement. “AIG did not contest this designation and welcomes it.”
In June, Newark, N.J.-based Prudential Financial Inc. said it was evaluating whether to request a nonpublic evidentiary hearing before the Financial Stability Oversight Council to contest its proposed designation as a systemically important financial institution.