Main » 2012 » August » 3 » BLOOMBERG: AIG Weighs Shutting Insurer’s Bank as Volcker Rule Looms
2:48 PM
BLOOMBERG: AIG Weighs Shutting Insurer’s Bank as Volcker Rule Looms
AIG, the bailed-out insurer, is considering whether to close its bank unit as the company prepares for more government regulation.
“We are discussing internally the effects the Volcker rule could have on us,” Chief Executive Officer Robert Benmosche said today in a conference call discussing second-quarter results. “We are giving thought to whether we should now close the bank we have.”
MetLife Inc. (MET), the largest U.S. life insurer, is seeking to limit U.S. oversight by getting rid of its bank status after the Federal Reserve blocked buybacks and a dividend increase. Hartford Financial Services Group Inc., Allstate Corp. and Ameriprise Financial Inc. (AMP) have also retreated from banking. Insurance units are overseen by watchdogs in the 50 states.
“They can be subject to less regulation and all the associated costs by simply disposing of the bank,” James Barth, a finance professor at Auburn University, said by phone. “If the bank is a small portion of its overall activities, then one has to say, ‘Why keep the bank?’”
Main 
