AIG To Bare Its Accounts Within Days
By Mark Ruquet
NU Online News Service, March 28, 12:42 p.m. EST?Amid reports of escalating activity by investigators probing American International Group transactions, a company spokesman said today the firm hopes to release its delayed filing of financial results within days.[@@]
A number of news outlets quoting unnamed sources have said the results may contain a huge accounting revision to reckon for the "certain transactions" that AIG began delving into after they drew scrutiny from the Securities and Exchange Commission and New York Attorney General Eliot Spitzer.
AIG disclosed in February that those two agencies were looking at non-traditional insurance products. In particular, the agencies have been looking at finite reinsurance transactions suspected of being employed by the company as income smoothing devices that improperly improved the AIG financial picture.
Besides arrangements with offshore reinsurers, the deal receiving the most examination is one between AIG and Berkshire Hathaway's General Re Cologne Re unit in Dublin.
Chris Winans, a spokesman with AIG, said the company would not comment on the reports to the effect that subpoenas have arrived for testimony from a variety of AIG personnel in addition to non-executive Chairman Maurice Greenberg, Howard Smith, the recently fired chief financial officer, and Christian Milton, a vice president for reinsurance, who was also dismissed. The Wall Street Journal said a dozen SEC subpoenas were involved.
"We are working to get our 10-K filed by around Thursday of this week and are committed toward working to that goal," he said. "Until then, it would not be appropriate for us to comment on what has been reported in the press," said Mr. Winans.
Mr. Greenberg, who has not yet testified, was replaced as AIG chief executive officer March 14. There are reports that he will be asked to leave his chairmanship if, like Mr. Smith and Mr. Milton, he invokes his right against self-incrimination and does not answer inquiries about questioned transactions.
The SEC does not comment on ongoing investigations.
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