Insurer to face scrutiny along with Lehman Brothers
The FBI is understood to have begun an investigation into alleged fraudulent activity at AIG, according to reports in the Times newspaper today.
The Times reports that the FBI is also investigation Lehman Brothers, Fannie Mae, Freddie Mac in a move that brings the number of US financial institutions under investigation to 26.
The US Secretary of State, Henry Paulson, and the Chair of the Federal Reserve Ben Bernanke, are battling this week to convince congressional leaders to approve President Bush’s $700bn bail out of Wall Street.
Meanwhile, AIG UK chief executive Lex Baugh has moved to reassure the UK market. In a statement Baugh told Insurance Times: “We are receiving tremendous support from our brokers and clients, both through the comments that they are making publicly and in the many meetings that we have had with them. We have found them to be very considered in their response to the changing circumstances in which we find ourselves. Last week was one of the busiest weeks of this year in terms of both new and renewed business.
