FT story: http://ift.tt/2xQ5XI2
An immediate financial gain is likely as this adds about $0.15/sh in earnings
AIG is poised to save as much as $150m in annual compliance costs after US officials released it from “too big to fail” supervision, a decision that could also help the insurance company expand again after years of post-crisis shrinkage.
A council led by Treasury secretary Steven Mnuchin ruled AIG’s collapse would no longer pose a threat to the financial system. The...a change that could help its recently appointed chief executive Brian Duperreault to pursue deals.
But the SIFI designation wasn't a hinderance to AIG's growth:
During his fight with the activist investor Carl Icahn, who pushed unsuccessfully for the group to break up to escape Sifi regulation, AIG’s former chief Peter Hancock argued the impact of designation was limited. “The Fed has not been a binding constraint,” he said. “We don’t spend too much time worrying about it.”
It may just be politically motivated and Prudential Life is the only remaining SiFi:
Its de-designation on Friday by the Financial Stability Oversight Council, which comprises the heads of the top regulators in the country, undermines an important part of President Barack Obama’s efforts to safeguard the financial system.
MetLife has already successfully challenged its designation in court. The AIG decision leaves...Prudential Financial as the only remaining Sifi.
Personally as someone overweight financials, this to me signals the beginning of the countdown to the next time these firms will over leverage themselves, do something stupid and crash out....again.
Submitted October 01, 2017 at 04:27PM by wanmoar http://ift.tt/2yQXC5h
