In the business news of the evening, it was announced (WSJ Article / WaPo Article) that AIG has settled with the feds and the states for $1.64 Billion.
You may recall that AIG got into a mess of trouble for, among other things, working with brokers to rig quotes, accounting irregularities, and certain “creative” uses of reinsurance. From WaPo:
The AIG settlement includes $800 million that the SEC will use to compensate investors deceived by a series of alleged accounting violations that the company disavowed in a major restatement last year. The settlement focuses primarily on a fall 2000 reinsurance deal that then-AIG chief executive Maurice R. “Hank” Greenberg allegedly initiated with Berkshire Hathaway Inc. subsidiary General Re Corp. to beef up AIG’s long-term loss reserves to help prevent a fall in its stock price. Last week, federal prosecutors indicted three former top General Re executives and AIG’s former head of reinsurance in connection with the same deal. All four plan to plead not guilty when they are arraigned next week.
Greenberg isn’t part of the AIG settlement.