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NEW YORK (CNN/Money) -
Lawyers for American International Group Inc., the Securities and Exchange Commission and New York authorities are discussing settlement of charges the insurer's accounting practices falsely improved its financial results, according to a published report.
The Wall Street Journal quoted two people familiar with the talks as saying negotiations are in early stages. A partial settlement could come as soon as the end of this month, although that is an optimistic target.
The paper reports that so far AIG (Research) has met separately with lawyers for New York Attorney General Eliot Spitzer, the New York Insurance Department and the SEC. In May, Spitzer and the state insurance regulators filed civil charges against AIG and two former top executives, ousted Chairman and CEO Maurice "Hank" Greenberg and ex-Chief Financial Officer Howard Smith. Both left their executive positions in March. A spokesman for Greenberg's legal team said that the former AIG chief is preparing to fight the charges against him.
"Mr. Greenberg continues to deny the allegations made against him, and he and his legal team are preparing to vigorously defend the allegations," spokesman Howard Opinsky told the paper.
An AIG spokesman declined to comment to the Journal beyond its previous statement that the company is cooperating with all government inquiries. Smith's attorney could not be reached for comment.
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