Maurice “Hank” Greenberg, the legendary Chairman and CEO of American International Group (AIG), is being investigated by New York Attorney-General Eliot Spitzer and the US Securities and Exchange Commission (SEC) to establish if he played a role in promoting products, according to US magazine Fortune.

The latest move by Mr Spitzer comes a few days after Mr Greenberg used a tennis term to suggest US regulators are “turning foot faults into murder charges” when probing companies.

“I think there is a recognition that while there are reforms necessary, many have gone too far,” Mr Greenberg said. “It takes great discipline to deal with [regulatory investigations] while at the same time run your business.”

Last November AIG paid $US126 million to settle inquiries by the Justice Department and the SEC into allegedly dubious insurance sales practices.

Earlier this month AIG revealed that it had been served by a new set of subpoenas by both Mr Spitzer and the SEC, who are investigating AIG’s accounting of certain “assumed reinsurance” – presumably a reference to finite reinsurance. Two more AIG employees have pleaded guilty to charges linked to bid-rigging with brokers from Marsh. That brings the total of prosecuted AIG employees to four.

The latest investigation will examine whether Mr Greenberg – who has run AIG since 1967 – promoted “non-traditional insurance products” to executives of other companies.

Not that the investigations are having any impact on AIG’s business. The group has just posted record profits for the fourth quarter totalling $US3.02 billion – an increase of 12% over last year.