Insurance conglomerate AIG will no longer face the stricter federal oversight it has dealt with since the 2008 financial crisis. (Mark Lennihan/AP)Nine years after it received an $182 billion taxpayer bailout, federal regulators said Friday that AIG is no longer “too big to fail” and released the global insurance giant from stricter federal oversight. Regulators “worked diligently to thoroughly reevaluate whether AIG poses a risk to financial stability,” Treasury Secretary Steven Mnuchin said in a statement. During the Obama administration, the FSOC labeled four firms — AIG, Prudential, General Electric’s financing arm and MetLife — as “systemically important financial institutions,” subjecting them to tougher government rules. And regulators decided that General Electric’s lending unit was no longer a threat to the financial system.

Source: Washington Post September 29, 2017 23:51 UTC