Robert Peston interviewed by James Ramsbotham
Feb 13 2009 by Paul Loraine, The Journal
AIG group at centre of fraud inquiry
The Serious Fraud Office said the preliminary inquiry will focus on suspected illegal transactions at AIG Financial Products Corporation, a subsidiary of AIG.
The United States parent group AIG is one of a number of firms under review by the FBI as part of a wider investigation of the failed sub-prime mortgage market. It was bailed out to the tune of billions of dollars of government money after suffering hefty losses in the credit crunch.
A spokesman for the Serious Fraud Office said: “The SFO is co-operating with US authorities who are already conducting separate, independent investigations involving conduct at AIG Financial Products Corporation and with UK-based financial services regulator the Financial Services Authority.
“The SFO’s inquiry does not concern the insurance operations of AIG in the UK or elsewhere.”
SFO director Richard Alderman said: “It is right for us to look into the UK operations of AIG Financial Products Corporation, to determine if there has been criminal conduct.”
AIG is one of the world’s biggest insurance and financial services organisations with operations in more than 130 countries.
