AIG is about to finalise a deal with US regulators to resolve a probe into whether it helped PNC Financial Services Group commit accounting fraud, the Wall Street Journal reported on Monday. A settlement with the Securities and Exchange Commission could come within the next month.
AIG is facing accusations that it helped PNC, Pennsylvania’s largest bank and owner of the PFPC hedge fund administration group, move bad loans off its books to inflate profits. The SEC is likely to fine AIG more than the $10 million it paid last year to settle accusations that it helped cell phone distributor Brightpoint commit accounting fraud.
A settlement would also require an independent review of AIG’s past transactions with other customers in an attempt to help the SEC assess how much AIG may have helped other customers manipulate their financial statements.
A settlement would enable AIG to avoid criminal charges from the Department of Justice.