It was just publicly and formally acknowledged, five years after AIG cost the US taxpayers billions of dollars that AIG is still a major problem.
The Financial Stability Oversight Council (FSOC) just unanimously agreed that AIG “could pose a threat to U.S. financial stability”. General Electric Capital, also.
FSOC includes Fed Chairman Bernanke, Treasury Secretary Jacob Lew and similar august personages. I do not agree with everything they say, but this I do.
It is not just the megabanks that are systemically threatening institutions.
Now that we know and it is publicly acknowledged, why don’t we do something about it?