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

Roswell, UFOs and Project Pandora
2014 07 23
Well, now, this is interesting. In fact, it’s very interesting. Over at the Department of Defense’s website you can find a file that has been declassified via the Freedom of Information Act on the subject of Project Pandora (which, to a significant degree, was focused on Cold War secrets, and how microwaves can affect the mind and body). It’s a fascinating ...
Men of Europe, Put Down the Eckhart Tolle Book and Pick up Your Sword
2014 07 23
Remember who you really are... The New Age Tactical Spiritual Military Industrial Complex supports murder and genocide. What is happening in Gaza today will eventually take place in London, Dublin, New York, Lisbon, Barcelona, Oslo, Glasgow, Melbourne, Stockholm, Auckland and Cape Town and wherever you are reading this article. Notice is being served upon all humanity. Not just the people of ...
Study Challenges Hypothesis that Birds Evolved from Dinosaurs
2014 07 23
The re-examination of Scansoriopteryx – a sparrow-sized, pre-Archaeopteryx, bird-like creature that lived in what is today China during the Jurassic period, about 154 million years ago – challenges the widely accepted hypothesis that birds are derived from land-dwelling dinosaurs that gained the ability to fly. Unearthed in Inner Mongolia in 2002, Scansoriopteryx was previously classified as a theropod dinosaur, from which ...
Israeli Professor: Rape Hamas Militants’ Mothers and Sisters to Deter Terrorist Attacks
2014 07 23
An Israeli academic has claimed that raping wives and mothers of Palestinian Hamas militants is the only thing that could deter further terrorist attacks. The remarks by renowned Middle East scholar Mordechai Kedar of Bar-Ilan University were made three weeks ago after the grim discovery of the bodies of the three kidnapped Israeli teenagers, but the recording was published online (in ...
’Mysterious plane’ with no callsign spotted circling London for two hours
2014 07 23
Scotland Yard has declined to comment on reports of a mysterious eavesdropping spyplane circling London. A radar tracking website showed an aircraft orbiting London at 10,000 feet for more than two hours. The plane had no recognisable callsign but was identified as a twin-engine Cessna F406 with the registration G-BVJT. The aircraft has been linked in the past to a shadowy fleet of ...
More News »