WASHINGTON (AP) — U.S. regulators have labeled insurer American International Group Inc. and General Electric Co.'s finance arm as potential threats to the financial system, designations that bring stricter government oversight.

The Financial Stability Oversight Council on Tuesday announced the two companies would be the first to be designated "systemically important." As a result, they must increase their cushion against losses, limit their use of borrowed money and submit to inspections by examiners. They will be under the supervision of the Federal Reserve.

The companies did not challenge the designation. A third company, which wasn't named but appears to be Prudential Financial Inc., was granted a hearing on its proposed designation.

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