Last October, American International Group (AIG 0.18%) and some other large companies were notified that they would be evaluated by the Fed to see if their operations fit the "systemically important financial institution" designation. In the past month, AIG was headed to the third stage of evaluation. As a means to begin monitoring large companies that derive much of their revenue from financial services, the SIFI designation is one that many companies would like to avoid.
But AIG has begun to prepare itself for the designation, if it comes, and taking steps to assure its investors that it can handle the heavier monitoring. In the video below, Motley Fool contributor Jessica Alling talks about the designation, what effects it might have on the companies, and what AIG is doing in order to prepare itself.
