This story appeared in Bank Digest.
The Financial Stability Oversight Council has updated its general information on nonbank financial company designations to reflect its rescission of the designation of American International Group, Inc., as a systemically important financial institution. The FSOC is authorized to make such designations under the Dodd-Frank Act if it determines that a nonbank financial company's material financial distress--or the nature, scope, size, scale, concentration, interconnectedness, or mix of its activities--could pose a threat to U.S. financial stability. Such companies are subject to consolidated supervision by the Federal Reserve Board and enhanced prudential standards.
The FSOC has also released a document presenting views of Council members regarding the rescission of the AIG designation.