On July 9, 2013, the Financial Stability Oversight Council (FSOC) announced that it has named American International Group, Inc. (AIG) and General Electric Capital Corporation, Inc. (GE) as systemically significant to the U.S. financial system. This designation (also known as SIFI or “systemically important financial institution”) triggers supervision by the Federal Reserve Board and requires that the named company follow enhanced regulatory standards.

The companies are the first nonbank financial firms designated as SIFIs pursuant to FSOC’s authority under Title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Consistent with the statutory standard for designations, FSOC determined that material financial distress at these companies – if it were to occur – could pose a threat to U.S. financial stability.

The designations were made June 3rd, although FSOC did not reveal their identities at that time. However, the two companies disclosed that they had been designated.  Prudential Financial Inc. also previously announced it had been designated.

Each company had 30 days to request a hearing to contest FSOC’s designation, but neither AIG nor GE requested such a hearing. Prudential is presently appealing its inclusion on the list.