Thursday, May 8, 2008

AIG Lays an E-G-G; 9.11 billion dollar loss

Jesse's Café Americain: AIG Lays an E-G-G: "value of risky debt has plummeted, forcing firms like AIG to reduce the value of their investments in products such as credit default swaps and mortgage-backed securities.

'While we anticipated a difficult trading environment, the severity of the unrealized valuation losses and decline in value of our investments were beyond our expectations,' Martin Sullivan, AIG's president and chief executive, said in a statement.

New York-based AIG lost $9.11 billion in its credit-default swaps portfolio during the first quarter."

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