US proposes labeling some nonbanks threats

Monday, June 3rd, 2013 | Finance News

WASHINGTON (AP) — Federal regulators have proposed that a group of firms that aren't banks be deemed potential threats to the financial system that need stricter government oversight.

American International Group Inc. says it is among the firms. The near-collapse of AIG in 2008 helped trigger the financial crisis and it received a $182 billion federal bailout that it has since repaid.

The Financial Stability Oversight Council on Monday didn't name the firms or say how many it wants to designate as so big and interconnected that their potential troubles could imperil the financial system.

The nonbank financial firms have 30 days to notify the council that they're contesting the proposed designation. In its statement, AIG didn't say whether it intended to do so.