you asked and here it is.
http://articles.moneycent...spatch/080211markets.aspxAIG auditors force larger write-downs
AIG shares tumbled after the company said auditors found a "material weakness" in the internal controls on how it accounts for and manages its credit-default-swap portfolios. Credit default swaps are financial instrument sold to protect investor in fixed-income securities, including mortgage securities, against losses.
Result: AIG may have to write off $4.88 billion from the portfolios just for October and November.
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Earlier, the company had estimated the October and November losses at between $1.05 billion and $1.15 billion. AIG's auditors found "material weakness" in its accounting for the contracts, and the firm doesn't know what they were worth at the end of 2007, a Securities and Exchange Commission filing said.
AIG said it will expand and clarify its disclosures on how it determines the value of those portfolios.
