SEC Probing AIG Over Credit Default Swaps: Report

Law360, New York (June 6, 2008, 12:00 AM EDT) -- Federal prosecutors have asked for information from the probe the U.S. Securities and Exchange Commission is reportedly launching into whether American International Group Inc. exaggerated the value of contracts related to subprime mortgages.

The new investigation concerns the way the company valued credit default swaps, which insure against the default of credit-backed securities such as subprime mortgages, the Wall Street Journal reported on Friday, citing anonymous sources.

Prosecutors with the U.S. Department of Justice and the U.S. attorney's office in Brooklyn are asking the SEC to...
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