American International Group plans to sell its savings and loan out of concerns around restrictions imposed by the so-called Volcker rule, not federal regulation.
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In comments this afternoon on CNBC, Robert Benmosche, AIG president and CEO, also said he welcomes federal regulation “because we want someone over our shoulder,” especially after what happened in 2008, when AIG required a huge federal bailout because it insured an estimated $2.77 trillion of what turned out to be troubled mortgage securities.
If it sells its thrift, AIG will likely be federally regulated through designation by the Financial Stability Oversight Council as a systemically significant non-bank.
That is likely to be done after the election.
It would trigger the same consolidated-asset oversight the Fed plans for thrifts owned by non-banks such as insurers.
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