The PwC – AIG Clusterschmuck
If someone wants to buy insurance against a risk, perhaps the insurance company should assume the risk is real.
American International Group shares are down sharply today, after the insurance company said its auditors at PricewaterhouseCoopers had concluded that it had a material weakness in its internal controls related to its estimate of the value of its credit default swap portfolio. It can’t quite figure out how big a writeoff to take in the fourth quarter, but it is going to be big.
Ouch, stomach-sinking news.