Today’s post reacts to the news that the Financial Stability Oversight Council (FSOC) has removed AIG’s designation as a ‘Systemically Important Financial Institution’ (SIFI), which has the effect of lessening the regulation of the massive insurer that was at the heart of the Financial Crisis. In this post, the focus will be on that decision and how it plays into a growing deregulatory movement which is gaining strength all the time although, as we shall see, this ‘amnesia’ that is taking hold is based upon particularly short-sighted and overly-politicised ‘point-scoring’ which puts the very fragile financial system in great peril. It was announced on Friday that, technically, the giant insurer American International Group, more commonly known as AIG, is no longer ‘too big to fail’. The insurer, who at the height of the crisis was afforded an $85 billion bailout , was on Friday taken off the ‘systemically important financial institution’ list which conveys a number of increased ...