AIG Says, “Oops, We Didn’t Mean It” (AIG)

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By Douglas A. McIntyre Updated Published
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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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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