Attributing to people with the knowledge of the matter, The New York Times reported, "AIG, the insurance giant that planned to retain Goldman to help reorganise its businesses, has replaced Goldman as its main corporate adviser."
Instead, the insurer is turning to Citigroup and Bank of America for the service, it added. According to the publication, AIG met with its two new advisers on Thursday.
While AIG spokeswoman declined to comment Bank of America and Citigroup did not respond to requests for comment, NYT said.
The report said the AIG had retained Goldman in order to assist the insurer reorganise its operations and sell off parts of its business and help return government bailout money while still preserving valuable units that would be part of a surviving company.
The report noted that AIG is the first company that has canceled major work with Goldman. Besides, European and some local officials in the US are also reconsidering their relationships with the bank.
The company's relationship with Goldman dates back decades. AIG's former chief executive, Maurice R. Greenberg, had a long relationship with Goldman's leaders. AIG and Goldman briefly considered merging, in the late 1990s, the daily said.