WASHINGTON–AIG's potential losses from its investment in derivatives of subprime loans could range from not material to a total write-off of 2007's fourth-quarter earnings, a Citigroup analyst said today in a note to investors.
AIG issued a statement saying it doesn't think the potential losses from the derivative securities “will be material.”
The company's comments were made in the wake of AIG's disclosure Monday that PricewaterhouseCoopers, its auditors, have suggested a lack of oversight at AIG has led to a material weakness in financial controls that render the company unable to reliably quantify the market value that underlies financial guarantees related to subprime investments.
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