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Regulators Propose $GE, $AIG, & $PRU Undergo Heightened Regulatory Status

“U.S. regulators have proposed designatingAmerican International Group,Prudential Financial and GE Capital for heightened regulatory oversight, in a long-anticipated move aimed at cracking down on risks to markets.

A group of regulators known as the Financial Stability Oversight Council said Monday it had voted to propose dubbing certain nonbank financial companies “systemically important,” or so big their failure could destabilize financial markets.

Regulators did not name the companies involved. AIG, Prudential and GE Capital, the financial services arm of General Electric, all said Monday that they had been notified that the risk council had proposed designating them.

A final determination by the council that a firm is systemically important would trigger extra regulatory scrutiny by the Federal Reserve….”

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