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
TheStreet Open House

AIG's Top 10 Losses: From Bad to Worse

No. 5: $3.6 billion in goodwill impairments. That's the same amount that: a.) Merrill Lynch paid in bonuses the night before Bank of America (BAC) took control; and b.) the increase that veterans groups have called for in health care.

No. 4: $4.4 billion as a result of a credit valuation adjustment. That's the same amount that: a.) Vietnam has invested in overseas development; and b.) Medicare is owed in overpayments by insurance companies.

No. 3: $6.9 billion paid in interest and amortization on credit lines provided by the Fed. That's the same amount that: Fannie Mae and Freddie Mac reportedly owned in foreclosed homes a year ago; and b.) the total sales of the world's largest diamond corporation, De Beers Group, in 2008.

No. 2: $13 billion in other-than-temporary impairment charges (losses on the value of investment assets). That's the same amount as: Nigeria's bilateral trade with India in 2008; and b.) bailout funding the government provided to automakers in December.

No. 1: $21 billion in lost tax benefits. That's the same amount as: a.) sales that the entire video gaming industry booked in 2008; b.) the estimated value of the Bollywood film industry; and c.) of course, the commercial paper credit line that AIG received last year when $1 billion still meant something.

Oh, there was another $2.3 billion in the "other" category, bringing the total to $64.1 billion.

This is how a $62 billion loss can appear reasonable.


Do you support the government's plan to give even more financial aid to AIG?

Yes. The company must be supported to keep the financial system from collapsing.
Yes. But the government needs to address the company's problems more quickly.
No. The company needs to sort out its issues without more funds.
No. Taxpayers have had enough of this. If it fails, it fails.

Gavin Magor joined TheStreet.com Ratings in 2008, and is the senior analyst responsible for assigning financial strength ratings to health insurers and supporting other health care-related consumer products, including Medicare supplement insurance, long-term care insurance and elder care information. He conducts industry analysis in these areas. He has more than 20 years' international experience in credit risk management, commercial lending and analysis, working in the U.K., Sweden, Mexico, Brazil and the U.S. He holds a master's degree in business administration from The Open University in the U.K.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs