Reuters reported that in a long-anticipated move aimed at cracking down on market risks, U.S. regulators have proposed designating American International Group, Prudential Financial and GE Capital for heightened regulatory oversight.
A group of regulators known as the Financial Stability Oversight Council said it had voted to propose dubbing certain non-bank financial companies “systemically important,” or so big their failure could destabilize financial markets.
According to the report, companies tagged for extra oversight would have to participate in regular stress tests, comply with new capital requirements and write living wills, or blueprints for how they could be taken apart if they were to fail.
To read the Reuters story that appeared in the Insurance Journal: click here.
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