Greenberg, who holds 16 per cent shares of the US$ 144 billion company, would still remain the non-executive chairman. His position, however, remains uncertain unless he testifies before the New York attorney general Eliot Spitzer. Served the subpoena on February 14, Greenberg was scheduled to appear before Spitzer last week but he postponed it. He is now likely to appear on April 14.

A week before, the company’s chief financial officer Howard Smith and a senior reinsurance executive were given the boot when they refused to cooperate in the investigations. According to law expert Christopher Bebel, AIG’s reputation stands to lose a lot if Greenberg invoked the Fifth Amendment to avoid self-incrimination and still continued in the important chair.

Meanwhile, AIG shares have gone down 24 per cent since February 14, when the company admitted the Securities and Exchange Commission (SEC) subpoenas. Last year, AIG posted revenue of US$ 98.61 billion and net income of US$11.04 billion.

However, on being contacted, the company’s spokesperson refused comment on the inquiry or the likelihood of restatement. According to company sources, AIG’s board of directors met this week to ponder over the investigations and find ways to restore investor confidence, which has taken a major beating after February 14.