Exclusive: Fed hires official to oversee AIG, Prudential
By Emily Stephenson
WASHINGTON (Reuters) - The U.S. Federal Reserve has hired a former state insurance commissioner to help it oversee non-bank financial firms that a council of regulators identified for tougher scrutiny last year.
Thomas Sullivan, who led the Connecticut Insurance Department from 2007 through 2010 and later worked at PricewaterhouseCoopers [PWC.UL], told Reuters he starts as a senior adviser on June 9.
Sullivan will help fill a critical expertise gap at the Fed, which has more experience regulating Wall Street banks and less of a track record with major insurers and other non-bank financial firms.
"I'm excited and anxious to start next Monday," Sullivan said.
Barbara Hagenbaugh, a Fed spokeswoman, confirmed the hire but did not provide further detail.
The Fed received authority to regulate insurers Prudential Financial Inc (PRU.N: Quote) and American International Group Inc (AIG.N: Quote) in 2013 after a group of regulators known as the Financial Stability Oversight Council decided those firms were so big their failure would destabilize financial markets.
During the 2007-2009 financial crisis, the U.S. government stepped in to stabilize AIG with a taxpayer-funded bailout that eventually topped $180 billion.