AIG Uses Accounting Gimmick To Reduce Money It Owes Taxpayers By $25 Billion
American International Group says it has slashed the amount of money it owes the government by $25 billion after moving two subsidiaries into special holding units ahead of their planned spinoffs or sale. How could this be? Didn't a Sanford Bernstein analyst just discover that AIG had a new $11 billion hole in its balance sheet? As it turns out AIG has reduced its debt to taxpayers without paying back a dime of the money it borrowed. Instead, it is just engaging in accounting chicannery to transfer the obligations to a pair of companies it is spinning off. The government...
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Tags: Accounting, Aig, American International Group, Amount Of Money, Amp, balance sheet, Discover, Moving, Sanford Bernstein, Spinning, Spinoffs, Subsidiaries, Taxpayers, X27