AIG May Be Too Big To Fail, Again: FSOC

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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