|By MARCY GORDON, AP Business Writer|
The companies did not challenge the designation. A third company, which wasn't named but appears to be
AIG received a
The government guaranteed up to
Members of the council, a group of top regulators, include Federal Reserve Chairman
Nonbank financial firms include insurers, hedge funds, mutual fund companies and private equity firms.
The council last month proposed that several companies, which it didn't name, be tagged as potential threats. AIG,
A Prudential spokesman declined comment Tuesday.
"Today the council has taken a decisive step to address threats to U.S. financial stability and create a safer and more resilient financial system," Lew said in a statement. He said the group will continue to review companies for possible designation as systemically important.
It was the most significant step yet by the council, which was created by the 2010 financial overhaul law to help prevent another financial meltdown.
In order to make the designations final, the council had to vote a second time on each company, with at least two-thirds of the 10 voting members agreeing. Lew, the council's chairman, had to be among the two-thirds.
AIG sold guarantees on mortgage securities that forced it to pay billions of dollars after the subprime mortgage bubble burst in 2007. AIG was intertwined with the financial system through its sale of mortgage-related investments to big
The federal thrift agency had regulated AIG, but the company's mushrooming business involving complex investments called derivatives was run out of
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