Government Declares Two Companies ’Too Big To Fail’
2013 07 10

By Emily Stephenson | Business Insider

The U.S. financial risk council on Tuesday said it has designated American International Group (AIG.N) and GE Capital (GE.N) as systemically risky, bringing them under stricter regulatory oversight.

The Financial Stability Oversight Council’s decision to name its first set of "systemically important" non-bank firms had been long expected by the financial services industry.

The designation shows that regulators believe the two companies are so big their failure could destabilize the financial system. The firms now come under regulation by the Federal Reserve and must meet capital and other requirements.

"These designations will help protect the financial system and broader economy from the types of risks that contributed to the financial crisis," said Treasury Secretary Jacob Lew, who also leads the oversight council.

The risk council, which includes the heads of other financial regulatory agencies, is a relatively new federal body that is testing its powers under the 2010 Dodd-Frank financial reform law for the first time.

After a number of non-bank firms struggled during the 2007-2009 financial crisis, Dodd-Frank gave the regulatory council the power to identify potentially risky non-bank firms and regulate them more like banks.

The first set of designations will not come as a surprise to the financial services industry. AIG in particular was expected to be tagged ’systemically important’ after it received a crisis-era bailout amid fears its size and interconnectedness could bring down the financial system.

[...]

Read the full article at: businessinsider.com



Related Articles
US Taxpayers Just Paid $780 Million To Fund The Latest Greece Bailout Tranche
The E.U. Cracks Up - Finns Against Portugal Euro Bailout
Nigel Farage: "Bombings, bailouts - what on earth are we doing?"
Spain to bailout their banks
Goldman Sachs pay out $111million in bonuses despite taking billions in bailout money
Who got the Bailout Money? Trillions Down the Drain
Greece Hires Goldman Sachs, Rothschild to Help Economy
Goldman Sachs Caught Manipulating Aluminum Prices, Stockpiles About 25% Of Global Inventories In Warehouses
Former AIG chief sues U.S. for $25 billion (Now that’s chutzpah!)
Fed in AIG rescue - $85B loan
Iceland President: Let Banks Go Bankrupt
Iceland’s Hörður Torfason – How to Beat the Banksters


Latest News from our Front Page

Sweden Recognizes Palestinian State; Israel Upset
2014 10 31
Sweden on Thursday became the biggest Western European country to recognize a Palestinian state, prompting a strong protest from Israel, which swiftly withdrew its ambassador from Stockholm. The move by Sweden’s new left-leaning government reflects growing international impatience with Israel’s nearly half-century control of the West Bank, east Jerusalem and its blockade of the Gaza Strip. It also comes during increased ...
Fed-Backed Study: How to Brainwash Public into Fearing “Climate Change” Like Ebola
2014 10 31
$84K study seeks ways to make public fear "climate change and overpopulation" The National Science Foundation is funding a study to determine how to brainwash the public into fearing “climate change and overpopulation” as if they were Ebola. The NSF awarded an $84,000 grant to researchers at the State University of New York at Buffalo yesterday to figure out how to make ...
Brain decoder can eavesdrop on your inner voice
2014 10 31
As you read this, your neurons are firing – that brain activity can now be decoded to reveal the silent words in your head TALKING to yourself used to be a strictly private pastime. That’s no longer the case – researchers have eavesdropped on our internal monologue for the first time. The achievement is a step towards helping people who cannot ...
6 Million Lies
2014 10 30
“If you do not specify and confront real issues, what you say will surely obscure them. If you do not alarm anyone morally, you yourself remain morally asleep. If you do not embody controversy, what you say will be an acceptance of the drift of the coming hell.” C Wright Mills. I need to share information I have discovered ...
Google’s New Computer With Human-Like Learning Abilities Will Program Itself
2014 10 30
In college, it wasn’t rare to hear a verbal battle regarding artificial intelligence erupt between my friends studying neuroscience and my friends studying computer science. One rather outrageous fellow would mention the possibility of a computer takeover, and off they went. The neuroscience-savvy would awe at the potential of such hybrid technology as the CS majors argued we have nothing to ...
More News »