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AIG Investors Shake Off a Pitch to the Head

John Grgurich
July 11, 2013

Two and a half hours into trading, American International Group (NYSE: AIG) stock is up 0.6% as investors ride a Fed-induced market wave and confidently shrug off being designated a SIFI.

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SIFI stands for Systemically Important Financial Institution. The designation was coined as part of 2010's Dodd-Frank financial reform act. Yesterday, the Financial Stability Oversight Council announced that AIG, along with GE Capital, would be designated SIFIs: the first two non-banks to receive this dubious honor. 

In market news, the minutes from the Federal Reserve's June 19 Federal Open Market Committee meeting were released yesterday. Rabid dissection of the discussion behind the FOMC's previous announcement that quantitative easing would be tapered as soon as this year revealed dissension in the ranks, with many Fed governors arguing not to taper too soon. 

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