AMERICAN International Group (AIG) the insurer under fire from regulators for improper accounting, said yesterday that it overstated net income for the past five years by $3.9 billion (€3.1bn), or 10%.

Reassuring words from the Federal Reserve triggered a late-session stock rally today, as minutes from the Fed's March 22 meeting showed it planned to stick with "measured" interest rate hikes, at least in the short term.