IE 11 is not supported. For an optimal experience visit our site on another browser.

AIG close to SEC settlement

American International Group Inc. is on the verge of finalising a deal with U.S. regulators to resolve a probe into whether the insurance company helped PNC Financial Services Group Inc. commit accounting fraud, the Wall Street Journal reported on Monday.
/ Source: Reuters

American International Group Inc. is on the verge of finalising a deal with U.S. regulators to resolve a probe into whether the insurance company helped PNC Financial Services Group Inc. commit accounting fraud, the Wall Street Journal reported on Monday.

A settlement with the U.S. Securities and Exchange Commission could come within the next month though any terms have yet to be agreed upon, the newspaper said, citing people familiar with the matter.

AIG is facing accusations that it helped PNC, Pennsylvania’s largest bank, move bad loans off its books to inflate profit.

The SEC is likely to fine AIG more than the $10 million it paid last year to settle accusations that it helped cell phone distributor Brightpoint Inc. commit accounting fraud, though no specific figure was disclosed, a person familiar with the talks told the WSJ.

A settlement would also require an independent review of AIG’s past transactions with other customers in an attempt to help the SEC assess how much AIG may have helped other customers manipulate their financial statements.

In addition, a settlement would enable AIG, the world’s largest insurer by market value, to avoid criminal charges from the Department of Justice, the Wall Street Journal said.

A spokesman for AIG was not immediately available for comment.