AIG welcomes U.S. Justice Dept. decision

CHICAGO, May 22 (BestGrowthStock) – American International Group
Inc (AIG.N: ) on Saturday praised a Justice Department decision
it did not specifically identify, but may relate to published
reports that federal prosecutors will not charge company
executives over credit default swaps.

“We welcome the Justice Department’s decision, and we
continue to cooperate with other authorities on their
assessment of these events as we focus on strengthening our
businesses and repaying American taxpayers,” the company said.

The Wall Street Journal reported on Friday that the U.S.
Department of Justice had decided not to prosecute some AIG
executives, concluding a two-year investigation.

The media office of the Justice Department was not
available for comment.

AIG Financial Products nearly brought down AIG in September
2008 after writing tens of billions of dollars worth of
insurance-like contracts on complex securities-backed mortgages
that turned out to be toxic.

The U.S. government stepped in with a $182 billion bailout
to avert a bankruptcy filing by AIG and stave off an even worse
global financial crisis.

Over the course of the next year, AIG took writedowns of
more than $40 billion on the swaps and had to put up billions
more in collateral to counterparties.

Stocks

(Reporting by Jim Marshall; Editing by Peter Cooney)

AIG welcomes U.S. Justice Dept. decision