Oh shit

http://www.cnbc.com/id/29353282

American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history, CNBC has learned.

Sources close to the company said the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate.

I hope the executives can fit in another huge party before they implode.

That massive loss is likely to spur downgrades in its insurance and credit ratings...

Gee, no shit?

Jesus, there are 6 year olds who manage their allowance money better then these guys run companies.

thewalrus wrote:Jesus, there are 6 year olds who manage their allowance money better then these guys run companies.

I know there are a lot of other advanced considerations, but when I think about the whole thing...AIG does banking and insurance. Their whole business is designed around people just giving them money. And them paying back as little as humanly possible. You give them money to store away and do with as they please. You get from them a half-a-percent interest on a savings account, then they charge you 18% on a charge card. You give them $2000 a year in premiums, they give you nothing unless you have an accident, and they'll find every reason they can not to honor your claim.

You can't get a better scam than that. Yet despite this, they lost $60 billion. How is that even possible?

JaysonAych wrote:

thewalrus wrote:Jesus, there are 6 year olds who manage their allowance money better then these guys run companies.

I know there are a lot of other advanced considerations, but when I think about the whole thing...AIG does banking and insurance. Their whole business is designed around people just giving them money. And them paying back as little as humanly possible. You give them money to store away and do with as they please. You get from them a half-a-percent interest on a savings account, then they charge you 18% on a charge card. You give them $2000 a year in premiums, they give you nothing unless you have an accident, and they'll find every reason they can not to honor your claim.

You can't get a better scam than that. Yet despite this, they lost $60 billion. How is that even possible?

haha it's like the ocean running out of water.