NEW YORK ( TheStreet) -- AIG (AIG) said Tuesday that the Financial Stability Oversight Council is considering deeming the insurance giant as a systemically important financial institution under Dodd- Frank.
If AIG is deemed too big to fail, it will be supervised by the Federal Reserve and be subject to higher capital standards.
Eight U.S. Banks - Bank of America (BAC), JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS), State Trust (STT) and Bank of New York Mellon (BK)- are currently considered too big to fail.
Regulators are also trying to determine which non-bank financial institutions should be subject to tighter controls.That the insurance giant is on the shortlist comes as no surprise to the market. Shares were up about 0.6%. --Written by Shanthi Bharatwaj in New York
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