AIG Reportedly Nearing Record Fine

American International Group(AIG Quote) is likely to pay a record-setting $1.5 billion fine to settle a lengthy regulatory investigation into the giant insurer's accounting practices, published reports say.

A settlement between AIG and regulators could be announced as early as this week, according to The Wall Street Journal and The New York Times.

The deal with New York Attorney General Eliot Spitzer and the Securities and Exchange Commission will eliminate a cloud that has hovered above AIG for more than a year. The settlement, however, will have no impact on the pending civil fraud lawsuit Spitzer has filed against Maurice Greenberg, AIG's former CEO and chairman. ...