American International (AIG) is accused of helping a banking client commit fraud and keep about $762m (522m) of bad loans off its balance sheet.

AIG says it did nothing wrong while analysts say the firm’s actions fall into a legal grey area.

The Securities Exchange Commission is also investigating the case.

‘Grey area’

PNC Financial Services paid $115m last year to settle criminal charges brought by the Justice Department on grounds that it had edition finance hill insurance international management mcgraw risk series moved the loans off its books, home personal finance insurance
its profit by $155m.

“The asset company derivative finance from in insurance insurance liability management underwriting wiley
seems to be saying AIG sold PNC on the idea of creating special-purpose entities for these bad loans,” said Michael Nix of investment firm Greenwood Capital Associates.

“These weren’t yahoo finance insurance auto sbc
illegal, but you could say they were in a grey area.

“If there are other things going on we’re not aware of, that’s another story.”

The special purpose vehicles under investigation are similar to those used by collapsed energy giant Enron to hide debt.