Britain’s Serious Fraud Office said today it has launched a preliminary inquiry into the operations of AIG Financial Products Corp., a British-based subsidiary of bailed-out insurer American International Group Inc., parent of Hartford Steam Boiler Inspection and Insurance Co.
The agency said it was cooperating with U.S. authorities who were already investigating the subsidiary, which issued derivatives called credit default swaps that helped sink AIG as a whole last year.
AIG’s troubles led to a bailout by the U.S. government for fear its collapse would be catastrophic for the system. AIG has a deal pending to sell Hartford-based Hartford Steam Boiler to Germany’s Munich Re for $742 million.
The Serious Fraud Office said its investigation did not involve AIG’s insurance business in Britain or elsewhere.
“It is right for us to look into the U.K. operations of AIG Financial Products Corp., to determine if there has been criminal conduct,” said Richard Alderman, director of the Serious Fraud Office.
“We will use our full range of powers to seek information and to speak to those with an inside knowledge of the company’s operations.”
AIG spokesman Joe Norton said the New York-based insurer was fully cooperating with all investigations, including separate investigations being conducted by U.S. authorities, which have been which have been previously disclosed by the company in regulatory filings. (AP)
