WSJ: SEC Probes AIG on Subprime Mortgages
The Wall Street Journal reported today that sources familiar with the matter have indicated that the U.S. Securities and Exchange Commission is investigating whether American International Group (AIG) overstated the value of contracts linked to subprime mortgages.
The way AIG valued credit default swaps, including those backed by subprime mortgages, is at issue, the publication reported.
Over the last two quarters AIG has posted record losses stemming from write-downs to the market value of these investments, held by a financial products unit.
Prosecutors from the U.S. Department of Justice and the U.S. attorney's office in Brooklyn, New York have asked for information the SEC is gathering, which could signal a criminal investigation, according to the Wall Street Journal.
According to the newspaper, an AIG spokesman said the company would cooperate in regulatory and governmental reviews on all matters.
Published on June 6, 2008
Are you a retail Agent Looking for a Quote?