“AIG is smaller today than when it received the biggest taxpayer bailout in US history,” said AFR Policy Director Marcus Stanley. “But it’s still a $500 billion company and the fourth largest U.S. insurer, with plenty of business in risky investment products like variable annuities. Now that it has been de-designated and removed from special government oversight, AIG will immediately pursue additional growth and take on new risks. The financial crisis demonstrated that purely state-level oversight cannot fully address the potential systemic risks of our largest insurance companies. It was an ill-considered and reckless decision to remove AIG’s designation as a systemically significant financial institution.”