AIG

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The Financial Ombudsman Service (FOS) has ruled against a bank for advising a client to invest £3.2m in a bond issued by failed US insurer AIG.

The former chief executive of AIG is suing the US government for $25bn for its 'unconstitutional' takeover of the insurer in 2008.

Coutts, the private bank owned by the Royal Bank of Scotland (RBS), is expected to be fined in the region of £6m by the Financial Services Authority (FSA) today for the mis-selling of bonds issued by failed US insurer AIG.

Prudential executives are set to be interviewed in the coming days as part of an FSA probe into the insurance giant's failed takeover bid for AIA.

The Financial Services Authority (FSA) is close to concluding its inquiry into alleged mis-selling by RBS-owned wealth manager Coutts.

Global insurance company share prices tumbled last night as concerns mounted about the cost of rebuilding Japan following Friday's earthquake and the resulting tsunami.

Asian insurer AIA raised $17.8bn in its long-awaited IPO this morning, valuing the group at $30.5bn.

The banking sector's warnings that tighter regulation will throttle the recovery have been rejected by the body designing the new safeguards.

AIG, the insurer that received £119bn in emergency funding during the financial crisis, is expected to appoint former Pru CEO Mark Tucker as head of its Asian business, AIA.