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 >To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.