AIG Is Near Closing Settlement with SEC over PNC Financial

[banana republican]

American International Group Inc. is close to finalizing a settlement with the Securities and Exchange Commission that would resolve the agency's investigation into whether the insurance giant helped PNC Financial Services Group Inc. commit accounting fraud, according to people familiar with the matter.

A settlement announcement could come within the next month. Terms of the agreement have yet to be finalized. However, as the settlement discussions currently stand, American International Group's fine in the PNC case would be larger than the $10 million fine that the insurer paid last year to settle SEC accusations that it helped Brightpoint Inc. commit accounting fraud, according to a person familiar with the settlement talks. This person declined to provide a precise figure for the fine.

The settlement also would require AIG to submit to an independent review of its past transactions with other customers. The review's purpose would be to help SEC officials determine the extent to which AIG may have helped other customers -- besides PNC and Brightpoint -- manipulate their financial statements.

http://online.wsj.com/article/0,,SB110048482244073870,00.html?mod=home_whats_news_us

[maddezmom]

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