AIG is no longer too big to fail and taxpayers deserve to know why
Author Gregg Gelzinis explains why the decision to de-designate AIG as systemically important erodes the credibility of the FSOC under the leadership of Treasury Secretary Steven Mnuchin.
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This month, the Financial Stability Oversight Council (FSOC) voted to remove the systemically important financial institution (SIFI) label from American International Group, which means AIG will no longer be subject to enhanced regulation and oversight by the Federal Reserve. While the Center for American Progress strongly believes that material stress at AIG would threaten financial stability, reasonable policy observers can disagree on the substance of the FSOC’s decision. But no reasonable observer should think that the process surrounding the decision was acceptable.
The above excerpt was originally published in The Hill. Click here to view the full article.
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Authors

Gregg Gelzinis
Associate Director