SFO launches inquiry into AIG Financial Products

by Gill Montia

Story link: SFO launches inquiry into AIG Financial Products

The Serious Fraud Office (SFO) is undertaking an inquiry into the UK operations of American International Group (AIG) subsidiary, AIG Financial Products.

The law enforcer says it is co-operating with authorities in the US that are currently working on separate investigations involving the business.

The Financial Services Authority is also active in the UK side of things but the SFO has stressed that the inquiry does not extend to any of AIG’s insurance businesses in Britain or overseas.

SFO director, Richard Alderman, comments that the purpose of the inquiry is to “determine if there has been criminal conduct”, adding that his office will use its full range of powers to “seek information and to speak to those with an inside knowledge of the company’s operations”.

Both AIG Financial Products and its parent company are reported to be co-operating with the SFO.

In September of last year, troubled AIG was rescued from the brink of collapse by an $85 billion bail-out from the Federal Reserve.

The group needed a further injection of cash in October and has since been selling assets and restructuring around its core property and casualty insurance businesses.