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AIG Opts Against Contesting Regulator Decision on Systemic Risk

American International Group Inc., the insurer that repaid a U.S. bailout last year, won’t challenge a decision by regulators that it poses a potential risk to the economy.

AIG opted against filing an appeal with the U.S. Treasury Department over its proposed status as a systemically important financial institution, Jon Diat, a spokesman for the New York-based insurer, said in an e-mail today.

“AIG welcomes supervision by the Federal Reserve, and is already working closely with the Federal Reserve Bank of New York as our regulator,” Diat said.

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