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3/19/2020

Financial Stability Oversight Council Announces Rescission of Nonbank Financial Company Designation | U.S. Department of the Treasury

Financial Stability Oversight Council Announces Rescission of
Nonbank Financial Company Designation
September 29, 2017

WASHINGTON – The Financial Stability Oversight Council (Council) today announced that it has
rescinded

its determination that material financial distress at American International Group,

Inc. (AIG) could pose a threat to U.S. financial stability and that AIG shall be subject to
supervision by the Board of Governors and enhanced prudential standards.
"The Council has worked diligently to thoroughly reevaluate whether AIG poses a risk to
financial stability," said Treasury Secretary Steven T. Mnuchin. "This action demonstrates our
commitment to act decisively to remove any designation if a company does not pose a threat to
financial stability."
Section 113(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires the
Council to reevaluate its nonbank financial company determinations at least annually.
The Council approved the rescission of AIG's designation by a vote of six in favor and three
opposed. Those in favor were Steven T. Mnuchin, Secretary of the Treasury; Janet L. Yellen,
Chair of the Board of Governors of the Federal Reserve System; Keith Noreika, Acting
Comptroller of the Currency; J. Christopher Giancarlo, Chairman of the Commodity Futures
Trading Commission; J. Mark McWatters, Chairman of the National Credit Union Administration;
and Roy Woodall, Independent Member with Insurance Expertise. Those opposed were Richard
Cordray, Director of the Consumer Financial Protection Bureau; Martin J. Gruenberg, Chairman
of the Federal Deposit Insurance Corporation; and Melvin Watt, Director of the Federal Housing
Finance Agency. One Council member, Securities and Exchange Commission Chairman Jay
Clayton, was recused from this matter and did not participate in the vote. The Council
determined that a member who is recused from

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