AIG Hammered By Credit Crunch

The credit crunch hit American International Group Inc. with brute force, as the global insurer reported a $5.3 billion fourth-quarter loss largely because of a write-down that exceeded many analysts' expectations. It was by far the worst quarterly loss the company has reported in its history, which dates back to 1919.

That write-down came on derivatives linked in part to subprime mortgages that the New York firm said fell in value by $11.12 billion, pretax, in the fourth quarter. It left open the possibility that actual losses on the portfolio could be "material" in some future reporting period.

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Read about how shares of the world's biggest insurer sank after it reported its largest-ever loss, with the added warning that further write-downs were possible.

Comments

[WIpatriot]

AIG, the crooks that keep on taking....

[mrcontinental]

No problem. Show'em your books and you'll get all the money you need. What's that? You've been doing Enron accounting! Nevermind then.

[ErnestineBass]

Wasn't the CEO of AIG KO'ed last year (?) after being IDed as a thief?

[PhillyQuaker]

You mean good ole Hank?
http://www.businessweek.com/magazine/content/05_15/b3928042_mz011.htm