AIG is back in the news, and once again for stuff that shows they don’t really know money. In a nutshell, AIG was being unrealistic about their losses and their auditor called them on it. So 1 billion turns into 5 billion in losses.
Now here’s the interesting part, I have been wondering when AIG would get hit like everyone else in financials, they pretty much have their hands in every area of the financial world so the idea that they were not going to take a large lose was just unrealistic. But how big of a loss is this? I quick scan with a cool little software package showed me that many of my AIG contacts have recently updated their business profiles, looking a lot more like a resume. Could they know something we don’t?