Watchdog puts close eye on AIG

City A.M. Reporter
INSURER AIG and finance group GE Capital are to face tougher rules under America’s Dodd Frank regulations, as the authorities believe they are so large that their failure would damage the whole financial system.

They are the first non-banks to be designated as systemically important, and neither firm fought the decision by the finance risk council. AIG was bailed out in the financial crisis amid fears its failure could wreck the economy.