Regulators name AIG, GE Capital potential risks to financial system
WASHINGTON (AP) -- U.S. regulators have labeled insurer American International Group Inc. and General Electric Co.’s finance arm as potential threats to the financial system, designations that bring stricter government oversight.
The Financial Stability Oversight Council on Tuesday announced the two companies would be the first to be designated "systemically important." As a result, they must increase their cushion against losses, limit their use of borrowed money and submit to inspections by examiners.
The companies did not challenge the designation. A third company, which was not named, was granted a hearing on its status.
AIG received a $182 billion taxpayer-funded bailout during the financial crisis, the largest for a single company. It has since repaid the bailout. The government offered to insure up to $139 billion of GE Capital’s debt during the crisis.
TALK TO US
If you'd like to leave a comment (or a tip or a question) about this story with the editors, please email us. We also welcome letters to the editor for publication; you can do that by filling out our letters form and submitting it to the newsroom.