malach hamovess

AIG and the Lunacy of GAAP Reporting

get it through your thick skulls: mark-to-market means mark-to-market: every investment contract made by AIG was made after the mandating of mark accounting. Every deal they went into had to maintain its value or generate a loss. If there is one thing we know, it's that they had no problem recognizing income from placing deals on their books - essentially benefiting from the mark before anything was actually earned. They took the fees when they did the deals; they ate like pigs at the trough.

AIG: The Success of Failure

Just another Hot-shot Failure