Why is AIG in trouble and why are people saying its failure would be a big deal?
You know the answer . . . derivatives. Specifically, a February 2008 article in the International Herald Tribune states:[AIG revealed that] auditors had questioned whether it properly valued its derivatives portfolio, raising new questions about accounting practices at one of the world’s largest insurance companies. *** The disclosure sent AIG shares down 11.33 percent and cast doubt on the company’s previous contention that it did not face major problems stemming from the credit crisis that has slammed other financial institutions. *** We “believe AIG management will have an extremely difficult time regaining investor confidence,” Standard & Poor’s wrote Monday in a note. [AIG’s auditor] concluded that AIG had a material weakness in its internal controls over financial reporting relating to the fair valuation of credit default swap portfolio obligations of AIG Financial Products. S&P cut its price target on AIG shares by 38 percent to $43 and downgraded the shares to “sell” from “buy.
You know the answer . . . derivatives. Specifically, a February 2008 article in the International Herald Tribune states: [AIG revealed that] auditors had questioned whether it properly valued its derivatives portfolio, raising new questions about accounting practices at one of the world’s largest insurance companies.*** The disclosure sent AIG shares down 11.33 percent and cast doubt on the company’s previous contention that it did not face major problems stemming from the credit crisis that has slammed other financial institutions. *** We “believe AIG management will have an extremely difficult time regaining investor confidence,” Standard & Poor’s wrote Monday in a note. (Article continues below) // [AIG’s auditor] concluded that AIG had a material weakness in its internal controls over financial reporting relating to the fair valuation of credit default swap portfolio obligations of AIG Financial Products. S&P cut its price target on AIG shares by 38 percent to $43 and downgraded th
You know the answer . . . derivatives. Specifically, a February 2008 article in the International Posted: Sep. 18, 2008. As federal regulators perform triage among wounded participants in the nerve-racking financial crisis, American International Group Inc. was deemed simply From YubaNet.com. Op-Ed Martha Rosenberg: AIG – Too Big To Play Fair Author: Martha Rosenberg Published on Nov 4, 2008 – 6:02:45 AM. It sounded like an Enron Raptors deal all over Isn’t there a big difference between AIG’s CDS exposure and that of MBI and ABK? AIG, unlike MBI and ABK, has to post collateral as the MTM’s go against them. From: media TARP Program Overseer Says U.S. Losing Big On AIG Investment BY ARTHUR D. POSTAL National Underwriter News February 6, 2009. WASHINGTON — A report today by the board overseeing America’s Best Political Newsletter. Calling All CounterPunchers! Nearing the Half-Way Point . We are now entering our second week of fundraising.If Washington doesn’t want to see the Dow lose an
