The main issues (what happened?

Accounting scandal

In 2005, AIG became embroiled in a series of fraud investigations conducted by the

Securities and Exchange Commission, U.S. Justice Department, and New York State

Attorney General's Office. Greenberg was ousted amid an accounting scandal in

February 2005.The New York Attorney General's investigation led to a $1.6 billion

fine for AIG and criminal charges for some of its executives.

On May 1, 2005, investigations conducted by outside counsel at the request of AIG's

Audit Committee and the consultation with AIG's independent auditors,

PricewaterhouseCoopers LLP resulted in AIG's decision to restate its financial

statements for the years ended December 31, 2003, 2002, 2001 and 2000, the quarters

ended March 31, June 30 and September 30, 2004 and 2003 and the quarter ended

December 31, 2003.On November 9, 2005, the company was said to have delayed its

third-quarter earnings report because it had to restate earlier financial results, to

correct accounting errors.