U.S. Says A.I.G. Is No Longer ‘Too Big to Fail’ 9 Years After Bailout<br />Mr. Mnuchin said in a statement that the removal of A. I.G.’s “too big to fail” label “demonstrates our commitment<br />to act decisively to remove any designation if a company does not pose a threat to financial stability.”<br />The government’s action is the latest step by the Trump administration to relax the oversight of major companies.<br />WASHINGTON — A group of federal regulators voted Friday to no longer classify the American International<br />Group as “too big to fail,” freeing the giant insurer from years of tough government oversight.<br />The Financial Stability Oversight Council, a group of regulators led by Treasury Secretary Steven Mnuchin, voted 6 to 3 to release A. I.G.<br />In an effort to prevent a repeat of the crisis, the Dodd-Frank law of 2010 empowered regulators to designate certain<br />nonbank financial institutions as “systemically important” and subject them to more intensive supervision.<br />Three regulators who were appointed by President Barack Obama voted against relieving A. I.G.<br />and other companies that received the label have fought to shed it, arguing<br />that they aren’t big or interconnected enough to imperil the broader financial system if they run into problems.
