Credit Crunch Hammers AIG |
| Wall Street Journal - Feb 29, 2008 |
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.
The results were posted after the market's close. AIG shares, which were down $2.10, or 4%, to $50.15 in 4 p.m. composite trading on the New York Stock Exchange yesterday, fell an additional $1.20, or 2.4%, to $48.95 in after-hours trading.
Read Full Article from Wall Street Journal
- Posted: 2008-02-29 10:35:00
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