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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (30894)	5/9/2008 2:09:35 PM
From: Madharry	Read Replies (1) \| Respond to of 78667

i was fortunate to get out of aig. clearly even the analysts who follow the company closely were blindsided. my guess is the ceo bites the dust here fairly soon. Insurance companies should not be getting into situations where they can lose billions of dollars a quarter unless its an act of god.

To: Spekulatius who wrote (30894)	6/16/2008 12:16:04 AM
From: Spekulatius	Respond to of 78667

AIG - the analogy to Citigroups demise were almost painful to watch. Sullivan was not necessarily a bad guy for normal times- sort of "assemble and keep the team together, they'll do alright' kind of leader. in times like this a company like AIG needs somebody who understands the assets the company holds and the risk associated.. Sullivan clearly was not the guy who was questioning the numbers his underlings (who probably fabricated the mess as well) came up with and looked really incompetent when the battle between the independent auditor's and AIG's accountants became public. Where will this go from here? Probably a big housecleaning with substantial further writeoffs. The new chief will have to throw out the old way assumptions and models and work in the market - market world. I think this will be very costly for the shareholders and i believe at least in the short term the downside risk is larger than the upside.