U.S. Opens Criminal Investigation of AIG
The Justice Department has opened a criminal probe into whether American International Group Inc. helped a major banking client move bad loans off its books, AIG said.
The insurer said it thought the investigation related to a Securities and Exchange Commission probe into whether the company’s AIG Financial Products Corp. unit helped PNC Financial Services Group Inc. cloak $762 million of bad loans, inflating PNC’s profit by $155 million. AIG denies wrongdoing.
AIG shares rose 14 cents to $68.50 on the NYSE.