Just reading through and trying to understand the AIG
quarterly result ... i.e. lost 61 billion in just 3 months! ... While the headline number is truely scary, there are some positives (but not too many shareholders)
1. Large non-cash write-offs
2. Paying huge claims that will benefit the recipients (lets just call them "counter-parties for now but you can call them BAC, C, etc.)
3. Govt has ploughed 170 billion into the economy through AIG
4. I'd guess the govt will need to plough in another 60-100 billion even tho AIG mgt say they won't need the new 30 bill soon.
5. Expect it to be nationalised and criminals identified (but not prosecuted)
6. Appalling risk management by AIG
7. Appalling oversight by every regulatory body wordwide!
re point 6 - if AIG had indulged in just a little bit of risk management - call it insurance 101 - then they could have broken the credit bubble very early on! Truely appalling underwriting.
This sad story of appalling risk management will run and run!
Fact of the day - AIG's loss amounts to 92 percent of the $67.4 billion that Americans spent at world's largest retailer Wal-Mart Stores Inc. in the fourth quarter, which includes the holiday season. - scary!
http://yahoo.brand.edgar-online.com/...0123-09-003740