LONDON, UK / ACCESSWIRE / October 3, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for American International Group, Inc. (NYSE: AIG) ("AIG"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AIG. The Company announced on September 29, 2017, that the Financial Stability Oversight Council has removed AIG's designation as a Systemically Important Financial Institution. A panel of federal regulators removed the Company from a tougher government oversight that had been imposed on the Company in the wake of its near collapse in 2008. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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The Announcement

The Financial Stability Council stated that it had voted 6-3 to rescind the Company's designation that it could pose a threat to the US financial system if it faced financial distress in the future. The decision is probably one of the most high-profile examples of the push generated by the Trump administration to dismantle what it views as irrelevant regulatory burdens, in place, post the 2008 financial crisis. The Company's near-collapse led to the largest government bailout of the crisis. AIG received $182 billion in the form of a loan and federal guarantees, which the Company paid off eventually.

AIG's CEO, Brian Duperreault, welcomed the decision the Financial Stability Oversight Council, where according to AIG, the decision reflects substantial and successful de-risking that Company's employees have achieved since 2008. AIG plans to continue vigilante risk management and to work closely with numerous regulators to enable a strong AIG to continue serving the clients. At the height of the 2008 financial crisis, AIG turned out to be a symbol of excessive Wall Street risk-taking and a touchstone for public anger. The Company was criticized at the time by members of Congress for offering millions of dollars in bonuses to executives even as the Company was being propagated by government support.

The Ruling

Under the 2010 Dodd-Frank Act, the oversight panel had the power to designate non-bank institutions like AIG as systematically important financial institutions, implying their failure could pose a risk to the entire financial system, to prevent a repeat of 2008 financial crisis. The designation subjected non-banks like AIG to strict regulations that had been imposed on the country's biggest banks by the Dodd-Frank Act.

AIG is about half the size it was in 2008 when it nearly collapsed due to the financial crisis. The Company got into trouble by selling guarantees of mortgage securities that forced it to pay billions of dollars after the subprime mortgage bubble burst in 2007.

Steven Mnuchin, the Chairman of the Council, stated that the decision demonstrated their commitment to act decisively to remove any designation if a Company does not pose threat to financial stability. While Mnuchin, Yellen, and four other council members supported the decision, it was opposed by Richard Cordray, Director of the Consumer Financial Protection Bureau, Martin J. Gruenberg, Chairman of the Federal Deposit Insurance Corp., and Melvin Watt, Director of the Federal Housing Finance Agency.

Last Close Stock Review

On Monday, October 02, 2017, the stock closed the trading session at $61.86, marginally up 0.77% from its previous closing price of $61.39. A total volume of 3.86 million shares have exchanged hands. American Intl.'s stock price advanced 2.28% in the last one month, 0.11% in the past six months and 4.25% in the previous twelve months. The stock has a dividend yield of 2.07% and currently has a market cap of $57.27 billion.

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