AIG to Shut Bank Accounts in Dodd-Frank Deposits Retreat - Bloomberg
AIG is joining Principal Financial Group Inc. (PFG) in narrowing
its focus ahead of rules that limit proprietary trading and
investments in private-equity or hedge funds by insurers with
bank units. MetLife Inc. (MET), Hartford Financial Services Group Inc.
and Allstate Corp. have sold deposits or retreated from banking
as regulators increase oversight.
“AIG Federal Savings Bank is currently undergoing an
orderly transition from a traditional savings bank to a trust
only thrift,” Jon Diat, a spokesman for the New York-based
insurer, said in an e-mail yesterday.
Robert Benmosche, the chief executive officer of New York-based AIG, said last year that the insurer was weighing whether
to shutter its bank to limit the effects of the Volcker rule.
AIG is a savings and loan holding company, and some of the
restrictions may apply to the company even if it ends its bank
status, according to the insurer’s annual report.
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