In its first quarter earnings release, American International Group, New York, said its domestic consumer finance operations are in discussions with the Office of Thrift Supervision over non-prime mortgages originated by AIG Federal Savings Bank from July 2003 through May 2006.The company said "Management expects that the application of underwriting criteria developed in consideration of regulatory guidance issued by the banking agencies will result in significant costs to the domestic consumer finance operations. At this time, management's best estimate of these costs is $128 million pre-tax, and a charge for this amount has been included in consumer finance operating income for the three months ended March 31, 2007."

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