American International Group Inc. and General Electric Co.'s finance unit were designated "systemically important" in a vote by U.S. regulators, a ruling the companies had already agreed to accept.
The vote by the Financial Stability Oversight Council subjects AIG and GE Capital to heightened Federal Reserve oversight, the Treasury Department said in a statement today in Washington. The council, or FSOC, proposed the designations of the two companies and Prudential Financial Inc. on June 3 and gave the companies 30 days to appeal. AIG and GE Capital said last week they wouldn't contest the designations, while Prudential said it will.
"The council has taken a decisive step to address threats to U.S. financial stability and create a safer and more resilient financial system," Treasury Secretary Jacob J. Lew, the council's chairman, said in the statement. "These designations will help protect the financial system and broader economy from the types of risks that contributed to the financial crisis."
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