AIG ex-boss avoids criminal case

Mr Greenberg will now face a civil case

The New York authorities investigating financial irregularities at insurance giant AIG have dropped criminal charges against former boss Maurice Greenberg.

Attorney General Eliot Spitzer had brought a lawsuit accusing Mr Greenberg of manipulating the firm's finances to boost its share price.

He has now decided to pursue the action in a civil case.

Mr Greenberg led AIG for 38 years, but stood down in March following investigations into some of its deals.

He has previously refused to answer questions from regulators, invoking rights under US law which protect people from self-incrimination.

In May, AIG admitted that it had overstated its net profit for the five years to 2004 by 10%, or $3.9bn (£2.3bn).