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U.S. Rescinds Federal Oversight of AIG

U.S. officials voted Sept. 29 to remove federal oversight of American International Group Inc., an insurance company now about half the size it was when it was on the brink of collapse during the Great Recession...
October 4, 2017

AIG

U.S. officials voted Sept. 29 to remove federal oversight of American International Group Inc. (AIG), an insurance company now about half the size it was when it was on the brink of collapse during the Great Recession. The move is one of the most tangible steps yet in the Trump administration’s push to re-evaluate financial regulations, which has included a top-to-bottom review of rules put in place in response to the crisis.

The action frees AIG of stricter oversight by the federal government, such as tighter capital rules, federal approval for large mergers, and placement of government examiners at the firm. AIG received one of the government’s biggest bailouts during the crisis as regulators feared its collapse would have far-reaching and unpredictable repercussions. Without the “systemically important financial institution” label, AIG’s lead regulator will once again be New York's Department of Financial Services.

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