New York attorney general Eliot Spitzer said he will not bring criminal charges against the world's largest broker Marsh & McLennan.
A series of reforms were announced by the company's chief executive Michael Cherkasky, who replaced Jeffrey Greenberg on Monday.
In a statement Spitzer said: "We are persuaded that the goals that would have been advanced by a criminal prosecution of the corporation will be better accomplished by criminal prosecution of individuals, adoption by the
company of dramatically new business procedures, installation of new leadership, a full examination of prior wrongdoing and a pledge of restitution to those harmed."
"Realising these goals, while also allowing Marsh & McLennan to retain a viable role in the marketplace, makes corporate criminal prosecution unnecessary."
