AIG Under Consideration For Too-Big-To-Fail Designation

Law360, New York (October 2, 2012, 10:27 PM EDT) -- American International Group Inc. said Tuesday the Financial Stability Oversight Council is officially considering designating it as a too-big-to-fail nonbank financial institution, a classification that would bring heightened regulatory standards.

To prevent a repeat of the 2007-08 financial crisis, including AIG's near-collapse, the Dodd-Frank Wall Street Reform and Consumer Protection Act tasked the FSOC with designating systemically important financial institutions that would be supervised by the Federal Reserve System's Board of Governors and subject to enhanced prudential standards.

The FSOC has sent AIG a notice that...
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