American International Group Inc. says for the first time that the transaction with a subsidiary of Berkshire Hathaway Inc. was «improper». It is still not clear whether the US No.1 insurer manages to file its annual report by today’s deadline.

The company has already received a two-week extention for the filing and was expected to report on March 31.
AIG said that it is not clear if accounting errors will result in an earnings restatement with the maximum possible effect of any accounting changes on its capital to be about $1.7 billion, or 2%.

The probes from the Securities and Exchange Commission and New York Attorney General Eliot Spitzer have led to the ouster of the company’s longtime chief Maurice R. "Hank" Greenberg.

AIG already forced Greenberg to resign as the company’s CEO about two weeks ago and he may also step down as the company’s chairman. “The reputation of the company would suffer tremendous damage if Greenberg were allowed to take the Fifth and continue serving in such as important role. The harm to AIG would be less if from Greenberg," former federal prosecutor Christopher Bebel told the wire service.

AIG might restate as much as $3 billion as a result of 30 insurance transactions, according to the Wall Street Journal.