AIG preparing for federal regulation
May 6, 2014 by Arthur D. Postal
American International Group is reducing its stock buybacks to bulk up its capital as part of its efforts to transition to federal oversight as a systemically important financial institution (SIFI), president and CEO Robert Benmosche acknowledged today.
As part of that effort, AIG is supporting legislation proposed last week in both the House and Senate that would allow the Federal oversight to use current insurance accounting tools instead of “bank-centric metrics,” Benmosche said.
Benmosche’s comments were made in response to a question by Randy Binner, a stock analyst at FBR Capital Markets in Arlington, Va., during AIG’s quarterly call with analysts following the release of its first quarter earnings last night.