Earnings, Commerse and Savings :: Market news

AIG sees uncertainty in too big to fail label for insurers filing


Insurance giant American International Group sees "considerable uncertainty" about U.S. regulations that deem non-bank financial institutions as being too big to fail, given the recent change in White House administrations, according to a filing. The "appropriateness and federal regulation" of non-bank too-big-to-fail institutions may also be questioned, AIG wrote in its 2016 annual filing. AIG is among a small number of insurers deemed by the U.S. government as being systemically important to the economy. The label, which comes from the 2010 Dodd-Frank financial reform law, subjects certain insurers and banks to tougher supervision and capital requirements. AIG's near-collapse in 2008 and its $182 billion bailout by the U.S. government led to its inclusion in the Federal Reserve's list of "systemically important financial institutions," known as SIFIs.

The election of President Donald Trump has led to speculation in the financial services industry and on Wall Street that the label and the requirements it imposes could be abolished. Trump's campaign promises included dismantling the Dodd-Frank law, which was passed in the wake of the 2007-09 financial crisis. On Feb. 3, Trump ordered a review of Dodd-Frank reforms. Trump has said his administration expects "to be cutting a lot out of Dodd-Frank," although the scope of Trump's plans is unclear.

Tax reform, which Trump has also discussed, could affect AIG as well, the insurer said in its filing. A change in the U.S. corporate tax rate could reduce the values of its deferred tax assets and investments in tax-exempt securities, AIG said.

SEC will not appeal ruling preventing certain retroactive penalties WASHINGTON The U.S. Securities and Exchange Commission has decided not to appeal a court ruling that limited its ability to punish bad actors for misconduct that predated the 2010 Dodd-Frank Wall Street reforms, the agency announced Thursday.

Companies with long-term view do prevail: James Saft In a world in which most investment managers are paid to be short- or medium-term in their thinking, companies taking the long view prove the best bet.

Why living longer should not lead to retirement benefit cuts CHICAGO When you hear a politician start a sentence with the phrase "We’re all living longer," grab your wallet. You are about to be told that Social Security or Medicare benefits should be cut because of America’s rising longevity.

Atlanta Fed raises U.S. first quarter GDP growth view to 2.5 percent


NEW YORK The U.S. economy is on track to grow at a 2.5 percent annualized pace in the first quarter following the latest data on home sales released last week, the Atlanta Federal Reserve's GDP Now forecast model showed on Monday. The latest first-quarter gross domestic product estimate was higher than the 2.4 percent growth rate calculated on Feb. 16, the Atlanta Fed said on its website. The regional central bank said its forecast for first-quarter real residential investment growth rose to 10.8 percent from an earlier estimate of 7.8 percent based on January's figures on new and existing home sales.

Home resales reached a 10-year high last month to an annualized pace of 5.69 million units despite rising prices and mortgage rates, the National Association of Realtors said on Feb. 22.

Two days later, the Commerce Department said new single-family home sales increased 3.7 percent at an annualized pace of 555,000 units in January.