WASHINGTON, Ariz., April 1 (UPI) -- American International Group, one of the world's largest insurance companies, is warning investors of a possible $1.7 billion reduction in capital.
In a week of damage control on several fronts, AIG revealed a number of "improper" deals are under federal investigation and pushed out long-time leader Maurice R. "Hank" Greenberg.
The company is reported cooperating but struggling to respond to inquiries from New York's attorney general, the Securities and Exchange Commission and the Justice Department, the Washington Post reports.
The far-flung investigations involve some of Wall Street's most prominent figures, including Greenberg and Warren Buffett, the head of Berkshire Hathaway.
Investigators are examining Greenberg's involvement in several insurance deals that may have been used to make the company's earnings look better or boost its reserves. AIG said it continues to review transactions that could reduce its net worth by $1.7 billion.