AIG Units Settles Racial Discrimination Charges (AIG)
Two AIG (NYSE: AIG) units, AIG Federal Savings Bank and Wilmington Finance Inc., have settled mortgage discrimination cases filed against them. These two units were accused of discriminating against black home buyers on fees for mortgages. Blacks were charged fees that were on average 0.20% higher than whites for the mortgages.
The AIG subsidiaries will pay $7.1 million for restitution and education efforts. Each victim is expected to get $2300 back. The subsidiaries will also provide $1 million to organizations providing financial counseling to blacks. The company said, ‘We are pleased to have reached an agreement with the government to resolve the issues in the complaint, as well as to avoid the distractions and burdens of protracted litigation over contentious issues,"
