The financial products division was behind much of AIG's losses The Serious Fraud Office (SFO) has begun a probe into the UK operations of a subsidiary of American International Group (AIG). The investigation - in co-ordination with the City watchdog the Financial Services Authority - is focused on the AIG Financial Products division. AIG's insurance operations - either in the UK or elsewhere - were not affected, the SFO said. The firm said it would co-operate fully with the investigation. AIG is getting about $150bn (£105bn) in help from the US government, in a rescue package to keep it afloat. A separate probe has been launched by US authorities. "It is right for us to look into the UK operations of AIG Financial Products Corp to determine if there has been criminal conduct," said the director of the Serious Fraud Office, Richard Alderman. "We will use our full range of powers to seek information and to speak to those with an inside knowledge of the company's operations." Winding down The financial products division was the part of the business held largely responsible for AIG reporting losses of $43bn last year. The division racked up huge losses on, among other investments, sub-prime mortgages, which led to AIG being bailed out by the US taxpayer in September last year. "They've had very serious valuation losses on their products and that really played a very large role in the financial troubles AIG has had over the past year," company spokesman Nick Ashooh told BBC Radio Five Live "We're effectively winding down most of the businesses involved with it.....and reducing our financial exposure and continuing on with our other very successful insurance businesses." Last month, AIG said that it would not be renewing its £14m-a-year shirt sponsorship deal with Manchester United that expires in May 2010.



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