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FSOC lets AIG shed ‘systemically important’ status

Joe Mont | October 2, 2017

The Financial Stability Oversight Council, on Sept. 29, announced that it has rescinded its determination of American International Group as systemically important and, as a result, it will no longer be held to heightened regulatory standards.

"The Council has worked diligently to thoroughly reevaluate whether AIG poses a risk to financial stability," said Treasury Secretary Steven Mnuchin. "This action demonstrates our commitment to act decisively to remove any designation if a company does not pose a threat to financial stability."

Section 113(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires FSOC, a multi-regulator body, to reevaluate its nonbank financial company determinations at least annually.

The Council approved the rescission of AIG's designation by a vote of six in favor and three opposed. 

Those in favor were Steven Mnuchin,... To get the full story, subscribe now.