Aig, Financial Industry | featured news

Insurer AIG says it will not join a $25bn (£16bn) lawsuit against the US government, which alleges that the terms of its rescue deal were unfair.

The Treasury Department plans to sell its remaining holdings of common stock in the American International Group, essentially ending taxpayers' four-year ownership of the bailed-out insurer.

Last week, the once-future Treasury secretary and current JPMorgan Chase CEO Jamie Dimon revealed a $2 billion loss. This previously undisclosed derivative trade should be a wake-up call for those claiming that finance has been “reined in” and no longer presents a threat to the global economy.

Federal regulators involved in the rescue of insurer AIG may have overpaid other banks when cutting a deal, a report says.

Financial stocks led a stock-market rally after the jobs report. AIG surged 20% and American Express led blue chips.

American International Group Inc's former Chief Executive Hank Greenberg agreed to pay $15 million to settle regulators' allegations of improper accounting transactions, the Securities and Exchange Commission said on Thursday.