New SIFI Standard Unveiled in AIG Action
Late Monday evening, FSOC released member statements leading to the Friday-night decision to end
AIG’s systemic designation. Most striking among these was Chair Yellen’s regarding the
reason she for the first time sided with Trump appointees against her fellow Obama
hold-overs. As detailed in this report’s analysis of FSOC action, Ms. Yellen did not make a
clear statement in favor of activity-and-practice regulation versus designation even though
global regulators have now generally agreed on the new approach. Instead, she
focused narrowly on AIG’s recent restructuring.