American International Group reportedly will announce this week a settlement of a variety of charges that would require the insurer to pay $1.6 billion to the Securities an Exchange Commission and the New York Attorney General’s Office. The New York Times reports that the settlement, which still requires SEC approval, would split the money between the two parties, with much of its going to harmed investors. AIG had been charged with, among other things, bid-rigging and improper accounting.
While the suit said most of the violations occurred while Maurice Greenberg was chairman and chief executive, a spokesman for Greenberg calls the settlement “merely a political trophy for the attorney general” and said it was “totally disproportionate to the impact of the alleged misconduct.”
