Government regulators remove AIG from tougher oversight

WASHINGTON (AP) - A panel of federal regulators has voted to remove insurance giant American International Group from the tougher government oversight that had been imposed on the company in the wake of its near collapse in 2008.

The Financial Stability Oversight Council said late Friday it had voted 6-3 to rescind the designation that AIG could pose a threat to the U.S. financial system if it faced financial distress in the future. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Janet Yellen both supported the move.

The decision represents one of the most high-profile examples of the push by the Trump administration to dismantle what it sees as unnecessary regulatory burdens erected following the 2008 financial crisis.

AIG's near collapse led to the largest government bailout of the crisis.