Banking, finance, and taxes
AIG Says, "Oops, We Didn't Mean It" (AIG)
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American International Group (NYSE: AIG) saw one ugly Monday with a draw down to a new 52-week low after it disclosed an auditor’s "material Weakness" and new round of decreased values to some $5 Billion. Apparently the officers saw the stock reaction yesterday and decided they should declare a "DO-OVER!" like kids playing a game.
Here is the statement from the company:
- "AIG continues to believe that the mark-to-market unrealized losses on the super senior credit default swap portfolio of AIG Financial Products Corp. (AIGFP) are not indicative of the losses AIGFP may realize over time. Based upon its most current analyses, AIG believes that any losses AIGFP may realize over time as a result of meeting its obligations under these derivatives will not be material to AIG."
It is probably easy to predict that hank Greenberg is going to be out making more mismanagement comments sooner rather than later.
AIG shares fell close to 12% yesterday down to $44.74. Apparently shareholders aren’t rushing to believe the company after a credibility gap from when it originally claimed "immaterial CDO exposure" as shares are up a whole 0.5% at $44.99 in pre-market trading.
Jon C. Ogg
February 12, 2008
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