AIG: Gov't may subject firm to greater oversight

[October 03, 2012]  WASHINGTON (AP) -- The government is considering whether American International Group is large enough to threaten the broader financial system, a designation that would subject the bailed-out insurance giant to greater federal oversight.

AIG said Monday that it has received a notice from the Financial Stability Oversight Council saying it may be designated a systemically important financial institution. If it receives the label, AIG would be regulated by the Federal Reserve and required to hold a larger capital cushion against losses.

AIG received a $185 billion government bailout, the largest provided to a single company.

The council was created by the 2010 financial regulatory overhaul.

[Associated Press; By MARTIN CRUTSINGER]

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