AIG stock tumble as it re-evalutes debt
The value of its super-senior-credit-default swap portfolio declined $5.9 billion and not $1.6 billion, AIG reported to the SEC.
American International Group Inc. mistakenly appraised how much its debt had grown, casting serious doubts on one of the largest suppliers of insurance in America.
A report submitted to the Securities & Exchange Commission by AIG revealed that the value of its super-senior-credit-default swap portfolio had declined $5.9 billion by November of 2007, and not $1.6 billion as AIG had previously estimated.
In the report, AIG remarked that its auditors, PriceWaterhouseCoopers had advised them that they had weaknesses in their financial reporting, as well as issues with their internal oversight.
AIG’s stock fell by 11.4% this morning, fueling a temporary decline in the greater market.
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