AIG, Prudential's SIFI Designations Confirm Industry's Worst Fear

By David Dankwa, Senior ReporterThe Financial Stability Oversight Council’s decision to designate American International Group and Prudential Financial as systemically significant, making them the first non-bank financial firms to come a step closer to being federally regulated, is sending jitters through the insurance industry.For more than 150 years, insurers have been regulated by state insurance commissioners, a status quo that industry leaders have been fighting to maintain. But passage of the Dodd-Frank Act gave FSOC the power to designate firms as significantly important financial...