This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AIG's Top 10 Losses: From Bad to Worse

American International Group (AIG - Get Report) issued an explanation of how the insurer made the single largest quarterly loss in history.

The company reported a $62 billion loss in the fourth quarter -- on its way to a $99.3 billion loss for the year - that appears almost understandable.

AIG details significant items (losses) totaling $64.1 billion. These are the top 10 significant items:

No. 10: $1.2 billion in foreign-exchange and other realized capital losses. Which is about the same amount that: a.) North Carolina said it would need in the next two years to keep the state's health plan from collapsing; and b.) General Motors (GM - Get Report) said it would cost in fees if the carmaker went into bankruptcy.

No. 9: $2.2 billion in derivatives losses on economic hedges not qualifying for hedge accounting. That's the same amount that: a.) Fifth Third Bancorp (FITB - Get Report) lost in 2008; and b.) the amount New Jersey will receive in additional Medicaid aid.

Analysis
Discussion
Stock Rating

No. 8: $2.8 billion in unrealized market valuation losses. That's the same amount that: a.) The Palestinians have asked to rebuild Gaza after the recent Israeli incursion; and b.) the amount that Abbott Laboratories (ABT - Get Report) spent on purchasing Lasik company Advanced Medical Optics.

No. 7: $3.3 billion related to securities lending. That's the same amount that: a.) The Navy is paying for the first 14,500-ton Zumwalt DDG1000 class, next-generation multi-mission destroyer; and b.) Maryland expects to receive in the federal stimulus plan.

No. 6: $3.4 billion in unrealized market valuation losses for setting up Maiden Lane III, one of the two companies that the Federal Reserve funded in November to separate AIG's risk from the group to ensure that it survived. That's the same amount as: the record-breaking value of the minerals that Alaska's mining industry produced in 2007; and b.) as American Express (AXP - Get Report) received in TARP money that it said it didn't need.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ABT $46.25 0.00%
AXP $77.32 0.00%
AIG $57.43 0.00%
BAC $15.56 0.00%
FITB $18.90 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs