AFSCME Pension Plan, Washington, urged the SEC to deny American International Group, New York, use of the self-registration procedure to register new securities because of the company's disclosure deficiencies. The American Federation of State, County and Municipal Employees fund asked the SEC to require AIG to use the longer, more complete disclosure for registering new securities.
"The company has lost more than 28% of its value in the past two months and has already missed its required annual filing deadline twice. Shareholders deserve as complete a disclosure as possible in the forthcoming period. AIG needs to be as transparent as possible," Gerald W. McEntee, chairman of the $700 million AFSCME fund and president of AFSCME, wrote in a letter to Alan Beller, director of the SEC's division of corporation finance.
"In light of AIG's admitted past disclosure deficiencies, it is particularly important for purchasers of securities offered by AIG in any offering in the next year to have the more complete disclosure" for registration, Mr. McEntee wrote. "Due diligence takes on heightened importance with respect to AIG because of the fluid nature of the situation and the possibility that more improper accounting or other problems will be uncovered in the course of AIG's own investigation or those being conducted by regulators."
The AFSCME fund owns 26,965 shares of AIG. Joe Norton, AIG spokesman, couldn't be reached for comment.