FBI Entering Insurance Probe
NU Online News Service, May 5, 10:00 a.m. EDT--Prompted by the probe into insurance industry practices and accounting by New York Attorney General Eliot Spitzer, the Federal Bureau of Investigation has begun its own investigation of the industry, according to an FBI spokesman.
At the same time, the FBI spokesman in Washington, D.C., said it would be inappropriate to say that New York-based insurer American International Group--the current focus of Mr. Spitzer's office, the New York Insurance Department and the SEC--is the target of an FBI inquiry.
"We're looking at the type of allegations made by the attorney general's office in New York to see if there is any trend in the industry," the spokesman said.
However, there has been some "confusion" in the press regarding the investigation, he added, noting that "a lot of people ran with the idea that AIG is being investigated."
In fact, he said, the scope of the FBI's investigation is industrywide and is not aimed at any particular company.
"There is no specific investigation," he said.
The spokesman's comments came in response to press reports that the FBI has begun its own investigation.
Earlier, a spokesman for AIG said he knew of no inquiries or subpoenas by the FBI into the company.
AIG spokesman Chris Winans said he could not comment on the merits of the FBI's latest review. He said, however, that "in general, we welcome any constructive effort aimed at improving the environment of the insurance industry."
Mr. Winans added, "AIG is cooperating with government authorities to the fullest extent possible, and that would include state, federal and regulatory authorities."
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