Reply #9: AIG in Damage Control [View All]

[UpInArms]

http://www.washingtonpost.com/ac2/wp-dyn/A17202-2005Mar31?language=printer

American International Group Inc. has warned investors about a $1.7 billion reduction in capital, pushed out its chairman of the past four decades and disclosed that deals under federal investigation were "improper."

And that's only the past four days.

<snip>

The investigations also raise questions that have become familiar in the fallout from corporate scandals at Enron Corp., WorldCom Inc. and other companies: Did the company use accounting tricks to hit the numbers investors were looking for? What did top management know?

Investigators are examining Greenberg's involvement in several insurance deals that may have been used to make the company's earnings look better or boost its reserve accounts. AIG said Wednesday that it continues to review transactions that could reduce its net worth by $1.7 billion. Regulators are scrutinizing those and other deals between AIG and several U.S. and offshore insurance companies. An attorney for Greenberg, who is scheduled to be interviewed by regulators April 12, did not return calls.

...more...

"no impact" :rofl: