AIG, Citigroup Tell SEC They Classified Some Repos as Sales
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American International Group Inc. and Citigroup Inc. joined Bank of America Corp. in saying they classified more than $25 billion of repurchase agreements and securities lending transactions as sales since 2007.
AIG said in a letter to the Securities and Exchange Commission released today that accounting rules forced it to classify the agreements as sales. Citigroup told the SEC that it misclassified the transactions and that the errors were unintentional and “not material.” Bank of America said last week that it unintentionally misclassified transactions.