The US Financial Stability Oversight Council announced on the 29th that the failure of American International Group would not pose a risk to US financial stability, and decided to rescind the insurer's designation as a systemically important financial institution. This means AIG will no longer be subject to stricter regulation.

　　The Council approved the decision that day by a vote of 6 to 3.

　　Analysts believe that rescinding AIG's systemically important financial institution designation marks the Trump administration's gradual rollback of some of the stringent financial regulatory rules of the Obama era. Since taking office, Trump has signed multiple executive orders and presidential memoranda requiring the US Treasury Department to re-examine existing financial industry regulatory laws and regulations, signaling a policy of deregulation.

　　The Financial Stability Oversight Council was established under the Dodd-Frank Act, the financial regulatory reform law passed in 2010, and is composed of multiple regulatory agencies including the US Treasury Department, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Commodity Futures Trading Commission.

　　During the 2008 financial crisis, multiple financial institutions including AIG were on the verge of bankruptcy, aggravating financial market turmoil and exposing the shortcomings of US financial regulation. The Dodd-Frank Act authorizes the Financial Stability Oversight Council to designate certain large financial institutions as systemically important, requiring them to follow stricter and more prudent regulatory requirements. AIG was designated a systemically important non-bank financial institution in July 2013.

Source: Xinhua News Agency 2017-09-30