American International Group (AIG) and subsidiary AIG Financial Products Corp. (AIGFP) have submitted settlement offers to the SEC and Department of Justice (DOJ) regarding charges stemming from questionable finance transactions.
"This proposed settlement will be comprehensive and bring finality to the claims raised by the SEC and the DOJ," said Maurice R. Greenberg, chairman of AIG. "It is in the best interests of our shareholders, customers and employees to reach this settlement."
As part of the proposed settlement, AIGFP will pay an $80 million penalty to the DOJ. Also, AIG will pay the SEC $46 million in disgorgement fees for the PNC transactions. The company will also hire in independent consultant to determine whether certain transactions between 2000 and 2004 were used to cook the books.