AIG is expected to offer $1.6 billion to settle with regulators

The settlement is not expected to ban contingent commissions, which are payments for steering insurance contracts to certain companies. This industry practice was highlighted in an investigation of bid-rigging by Eliot Spitzer, the New York attorney general. But it is likely to require AIG to make m...

Full description

Saved in:
Bibliographic Details
Published inDeseret news (Salt Lake City, Utah : 1964)
Main Author Jenny Anderson New York Times News Service
Format Newspaper Article
LanguageEnglish
Published Salt Lake City, Utah Deseret Digital Media 06.02.2006
Online AccessGet full text

Cover

More Information
Summary:The settlement is not expected to ban contingent commissions, which are payments for steering insurance contracts to certain companies. This industry practice was highlighted in an investigation of bid-rigging by Eliot Spitzer, the New York attorney general. But it is likely to require AIG to make more complete disclosures about such payments in the future. "Shareholders lose when companies choose to settle investigations motivated by political ambition, fueled by threats and settled out of fear," said Howard Opinsky, a spokesman for [Maurice R. Greenberg], in response to questions about the tentative settlement. Chris Winans, a spokesman for AIG, declined to comment on a possible settlement. Darren Dopp, a spokesman for Spitzer's office, declined to comment, and a spokesman for the SEC could not be reached for comment.
ISSN:0745-4724