AIG Faces Fed Scrutiny as Buffett's Bets Spared by Dodd Law

bloomberg.com — American International Group Inc. said controls on Wall Street signed into law by President Barack Obama may force the insurer to raise capital, undergo stress tests and limit bets on private equity and hedge funds.

The Dodd-Frank Act could “materially and adversely affect AIG’s businesses” and hurt cash flows and credit ratings, the New York-based firm said Aug. 6 in a filing. The Federal Reserve may be the bailed-out insurer’s regulator if a new risk watchdog determines that an AIG failure could threaten U.S. economic stability, the firm said.

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