In exchange, AIG had given a
Attorney General Eliot Spitzer. However, by changing management, implementing reforms and providing restitution to injured investors, customers and states, the company has placed itself on a path toward resurgence.
In addition, AIG has agreed to stop paying such commissions in any line of insurance where companies with 65 percent of gross written premiums do not do so. The company has also agreed to support legislation banning contingent commissions and requiring greater disclosure of compensation to brokers and agents.
It will be providing new disclosures about ranges of compensation paid to brokers and agents by insurance product on a special web site later this year.
The agreement also provides for additional reinsurance reporting obligations by AIG to the Insurance Department and monitoring of financial reporting and corporate governance practices by the Insurance Department and the SEC. A substantial portion of the monies will be available to resolve claims asserted in various regulatory and civil proceedings, including shareholder lawsuits.
AIG has fully cooperated with these authorities throughout their investigations, and we will continue to do so. We have already implemented a wide range of improvements in our accounting, financial reporting and corporate governance, and will continue to make enhancements in these areas.
AIG is committed to business practices that provide transparency and fairness in the insurance markets. We support management in its ongoing commitment to enhanced accounting, financial reporting and corporate governance. AIG said it will continue to cooperate with all other pending investigations.
AIG will hold a conference call for the investment community Thursday at 5 p.
The call will be broadcast live on the internet at www. See other AIG news in National news.
Was this article valuable?Apr 10, · Investors in embattled American International Group Inc. (AIG) may have breathed a sigh of relief at the Mar. 28 announcement that Chairman Maurice . Sep 17, · AIG's audit firm, PricewaterhouseCoopers, forced it to change how it was valuing the products.
That caught the attention of Donn Vickrey, an analyst at Gradient Analytics, who began to question AIG's earnings quality. He went back into the company's SEC filings and chronicled the sharp declines in the valuation of its derivatives. State and federal regulators today announced agreements that resolve pending litigation and investigations of fraud, bid-rigging and improper accounting.
AIG acknowledged that it was wrong to. What went wrong at AIG? Despite US$ billion in annual sales and assets in excess of US$1 trillion, on the 16th of September , AIG accepted the Federal Reserve’s US$85 billion rescue package in order to prevent itself from facing a Chapter 11 filing.
AIG Life Insurance is recommended by our financial advisor and we know others who have the same policy. We have had policies with AIG for several years and we are confident in the management of /5(81). Dec 31, · The contracts were flying out of AIG Financial Products. Hardly anyone outside Wall Street had ever heard of credit-default swaps, but by early , investment banks were snapping them up to insure all kinds of deals in case of default, fueling one of the great financial booms in U.S.