An AIG news release posted on its Web site said AIG will pay into an SEC disgorgement fund approximately $46 million in fees (and interest on the fees) on the transactions relating to PNC Financial Services Group . AIG had been accused of helping PNC remove bad loans.
Subsidiary AIG Financial Products Corp. (AIGFP) will also pay a penalty of $80 million to the DOJ. The proposed settlement with the DOJ consists of an agreement covering AIG and AIGFP and a deferred prosecution agreement with AIGFP PAGIC Equity Holding Corp. (PAGIC). That agreement will foreclose future prosecutions in connection with the PNC and Brightpoint transactions, provided that the companies comply with the agreements, according to the news release.
The proposed settlement includes the appointment of an independent consultant who will review certain transactions entered into between 2000 and 2004 to determine whether the transactions were used to violate GAAP or obtain a specified accounting or reporting result, the statement said. The consultant will be mutually agreed upon by the SEC, the DOJ, and AIG.
“This proposed settlement will be comprehensive and bring finality to the claims raised by the SEC and the DOJ, ” AIG Chairman Maurice Greenberg said in the news release. “It is in the best interests of our shareholders, customers and employees to reach this settlement.”