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As I had noted quite some time ago, insurance companies are now slowly fessing up to their sins:
http://business.timesonline.co.uk/to...cle3354225.ece
AIG writes down $4.8B in Q1 2008
http://dailybriefing.blogs.fortune.c...osses-for-aig/
AIG reports as much as $5B in additional writedown losses
http://business.timesonline.co.uk/to...cle3354225.ece
AIG writes down $4.8B in Q1 2008
http://dailybriefing.blogs.fortune.c...osses-for-aig/
AIG reports as much as $5B in additional writedown losses
The firm could face additional losses because, it turns out, that some of its bad bets on subprime securities were made using the cash collateral in securities-lending accounts at AIG insurance subsidiaries. Rather than investing the cash in those accounts in Treasury notes or other low-risk debt, AIG plowed almost two-thirds of the $78 billion pool into higher-yielding mortgage-backed securities, Bloomberg reports.