AIG: Gov't may subject firm to greater oversight

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By MARTIN CRUTSINGER, Associated Press

WASHINGTON (AP) — American International Group says the government may designate the company large enough to pose a risk to the broader financial system. The label would subject the bailed-out insurance giant to greater federal oversight.

AIG said it has received a notice from the Financial Stability Oversight Council saying it is considering designating the company a systemically important financial institution. Such institutions would be regulated by the Federal Reserve and required to hold a larger capital cushions against losses.

AIG received a $185 billion government bailout, the largest provided to a single company.

The council was created by the 2010 financial regulatory overhaul.

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