November 26, 2004
AIG to pay $126m to settle allegations
American International Group Inc., the world’s largest insurer, agreed to pay $126 million to settle allegations it helped clients such as PNC Financial Services Group Inc. inflate profit.The accords with the US Securities and Exchange Commission and Department of Justice require American International to pay an $80 million penalty and return $46 million in fees it made helping PNC remove bad loans from its books, the New York-based company said yesterday in a statement.
American International Chairman Maurice “Hank” Greenberg, 79, resolved the federal inquiries as New York Attorney General Eliot Spitzer separately probes whether the insurer colluded with brokers to get business. The sanctions equal 5 percent of the company’s third-quarter net income.
Posted by Tom Troceen