AIG, Waiting for the Other Shoe to Drop
Posted on April 26th, 2005 by MoverMike
Yesterday, it was announced that the haircut to book value of $1.77 Billion might not adequately reflect the adjustments that will take place at AIG (although some say it won’t be much more). Today, New AIG Report Raises More Issues With Accounting, the WSJ is reporting
A report by lawyers for American International Group Inc. and its board raises serious questions about the integrity of AIG’s financial-reporting systems, including checks and balances in the accounting process at the behemoth insurer, according to people knowledgeable about the matter
Separately, regulators are scrutinizing whether AIG in the early to mid 1990s deliberately undercounted workers’ compensation premiums it collected from corporate customers, according to people familiar with the matter.
Such undercounting would have had the effect of reducing the amount AIG paid into a state workers’ compensation fund, potentially totaling tens of millions of dollars over the years, according to people familiar with the matter.
Discussion Area - Leave a Comment