A criminal investigation has been launched by the US Justice Department into AIG.
According to reports, the investigation is to determine whether the world's largest insurer broke the law by helping PNC Financial push bad loans from its balance sheet.
The insurer announced that one of its subsidiaries, AIG Financial Products, was the subject of a probe by the Justice Department in a regulatory filing.
Two years ago, the SEC brought charges against PNC for hiding troubled loans and other assets in three off-balance sheet vehicles.
The government said PNC removed $762m in “volatile, troubled, or under-performing loans and venture capital assets” from its balance sheet during 2001 in order to boost earnings.
AIG Financial Products has come under scrutiny because it helped structure those vehicles for PNC. The entities involved were included on AIG's consolidated balance sheet.
