AIG Hammered By Credit Crunch

AIG Hammered By Credit Crunch

Wall Street Journal   |  Liam Pleven   |   February 29, 2008 12:08 PM


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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.


 
 

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

    Favorite    Flag as abusive Posted 03:12 PM on 02/29/2008

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.

    Favorite    Flag as abusive Posted 01:27 PM on 02/29/2008

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

    Favorite    Flag as abusive Posted 02:05 PM on 02/29/2008

Yuppers, the one and the same.

    Favorite    Flag as abusive Posted 10:56 PM on 03/02/2008
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