Fed Chair Janet Yellen defended her position in voting to release AIG from its status as a company “too big to fail,” saying that the insurer is a changed business from the one that needed a USD 185 bn taxpayer bailout,according to the FT (paywall). Yellen said that while AIG needed the regulation after the financial crisis, it no longer poses a systemic threat. Yellen’s vote strikes a deregulatory tone that the Trump administration will favour and we can’t help but think that with her seat up for grabs in 2018 this might be an effort to curry favour before a decision is made.

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