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Wednesday, August 06, 2008

AIG:$5.36 Billion Loss

by Calculated Risk on 8/06/2008 06:25:00 PM

From Bloomberg: AIG Posts Third Straight Quarterly Loss on Housing

American International Group ... posted a $5.36 billion loss as writedowns tied to the housing slump wiped out profit for a third straight quarter. ...

The insurer reduced the value of credit-default swaps, guarantees AIG sold to protect fixed-income investors, by $5.56 billion and marked down other holdings by $6.08 billion before taxes.
The biggest insurers in the U.S. and Bermuda posted more than $77 billion in writedowns linked to the collapse of the mortgage market from the start of 2007 through the first quarter, with AIG representing about half that total.
The confessional is still very busy.