NEW YORK, Nov. 3 (UPI) -- The tussle between American International Group and U.S. regulators is turning on whether or not to have an independent monitor at the big U.S. insurer.
The Securities and Exchange Commission, which had apparently come close to settling with AIG last month, is pushing for an independent monitor with an open-ended mandate, the New York Times reported Wednesday.
The SEC has been investigating the company's sale of financial reinsurance, also known as finite insurance, to Brightpoint, a cell phone maker, to help smooth out the manufacturer's earnings. On Oct. 21, AIG said the policy helped Brightpoint conceal $11.9 million in losses in 1998.
Lawyers familiar with securities law say AIG could be expected to oppose the installation of an independent monitor.
"Typically when you settle these matters you want an end to it," said Lewis D. Lowenfels, a lawyer with Tolins & Lowenfels in New York.
"But with a monitor in there, it is open to further investigation, findings of possible violations and you really can't control where it may lead."
