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May 16, 2008 6:46:35 AM CDT



AIG Posts $5.2B Loss on Writedown  

Posted Feb 28, 08 5:49 PM CST in Business    Most Covered

(newser) – Today's after-hours bad news from the credit-crunch front comes from insurer AIG, which reported a fourth-quarter loss of $5.29 billion after taking an $11 billion writedown on mortgage-related insurance contracts, the Wall Street Journal reports. The loss amounts to $2.08 per share; American International Group turned a profit of $1.31 in the fourth quarter of 2006.

The loss seems certain to tap into investor anger over the downward spiral that accompanied Martin Sullivan's ascension to CEO in 2005. "People are just so frustrated with management," one analyst tells Bloomberg, "with the price of the stock and with their performance." Sullivan called the 2007 results "clearly unsatisfactory" but predicted that continuing uncertainty will take a toll on AIG.

Sources Wall Street Journal, Bloomberg

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AIG Posts $5.2B Loss on Writedown
A man exits the American International Building in New York's Financial District, Wednesday, Feb. 27, 2008. American International Group Inc. reported late Thursday it lost $5.2 billion in the fourth...   (Associated Press)
AIG Posts $5.2B Loss on Writedown
A man passes the American International Building in New York's Financial District, Wednesday, Feb. 27, 2008. American International Group Inc. reported late Thursday it lost $5.2 billion in the fourth...   (Associated Press)
AIG Posts $5.2B Loss on Writedown
The headquarters of the American International Group Inc. is shown in this March 1, 2007, file photo in New York. AIG announced late Thursday that it lost $5.2 billion in the fourth quarter of 2007. (AP...   (Associated Press)
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