AIG Report Brings Back Bad Memories
AIG’s (AIG) fourth quarter earnings report after the close yesterday, in which they announced $11 billion in writedowns on exposure to credit default swaps it wrote and $2.6 billion in writedowns on mortgage backed securities it holds, brought back some bad memories (AIG 4Q Earnings Release).
The $11 billion writedown on their CDS portfolio was much larger than they suggested it would be only 3 weeks ago.
AIG is getting torched today (down 7%) on heavy volume, and the financials are leading the market down (XLF: -4%) as investors worry that there are more dead bodies yet to be revealed.