US regulators unshackle AIG from “too big to fail” classification

US regulators unshackle AIG from “too big to fail” classification: In one of the bluntest-yet signs that financial crisis-era reforms are being unwound, the Financial Stability Oversight Council has removed AIG’s classification as “too big to fail.” The move would free the insurance provider from proposed capital surcharges and other federal restrictions on its business, the Financial Times reports. FSOC is the body that decides which non-bank financial companies are “systemically important.” Fed boss Janet Yellen voted in favor of the move.