Trump Administration: AIG Is Now Free to Screw the Economy Again

[HipChick]

The Trump administration on Friday rolled back key regulations on one of the Wall Street firms responsible for the 2008 economic collapse—a move that could result in a huge windfall for a billionaire former White House adviser.

In a 6-to-3 vote, the Financial Stability Oversight Council (FSOC), which is chaired by Treasury Secretary Steven Mnuchin, declared that insurance giant American International Group (AIG) should no longer be considered a “too-big-to-fail” institution that could trigger a wider economic catastrophe if it went under. That means AIG will no longer be subject to a host of federal regulations and oversight of its internal practices and acquisitions. The FSOC vote was announced after markets closed Friday but is expected to provide a major boost to the company’s stock.

That’s a big win for Carl Icahn, the irascible billionaire, who is reportedly AIG’s fourth largest shareholder and one of America’s wealthiest investors. Icahn is also one of Trump’s biggest supporters and previously served in the administration; he left his post last month as a special adviser to the president on regulatory reform.
Icahn lobbied Trump to choose Mnuchin to run the Treasury Department, which Trump ultimately did. Now it is Mnuchin who is returning the favor for Icahn. The vote to remove AIG’s designation as a “systemically important financial institution,” or SIFI—Washington-speak for too big to fail—could free up the company to grow and acquire other businesses down the road. In effect, it eliminates the checks that have kept AIG in line since the crisis and that have helped prevent another similar financial meltdown. One insurance industry expert told me that the move could boost the company’s stock price by as much as 10 percent. AIG’s current market value is $55 billion. That could mean a bump of as much as hundreds of million dollars for Icahn’s stake in AIG.
http://www.motherjones.com/politics/2017/09/trump-administration-says-aig-is-now-free-to-screw-the-economy-again/

[louis-t]

1. I wonder how much drumpf has invested in AIG.

Just askin'.

[HipChick]

2. If the media would dig some

I'd bet they would find a ton...