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AIG Posts Record Loss, As Crisis Continues Taking Toll

Wall Street Journal Original article ›

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AIG has $7.8 billion loss in 1st quarter 2008 and will try to raise $12.5 billion in capital to help its balance sheet against these losses. It took a $9.1 billion writedown in the first quarteron credit derivatives designed to protect against losses on a range of investments including subprime mortgages. AIG shares have fallen 40% in the past year. Mr sullivan is having to manage an increasingly complex company built by a dominant manager like Hank Greenberg over may decades.which may prove to be a difficult task in this economic environment.


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