Buy custom What went wrong with AIG 
    
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            | Topic: | 
            
                
                    Business
                
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            | Number of pages / Number of words: | 
            
                3 / 803             | 
        
                
    
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In 2006, AIG had settled an accounting scandal for $1.6 billion. Also, in June, the SEC and Justice Dept were examining how the company valued certain complex derivative transactions. All these past transgressions didnât help AIG, rocking investor confidence and eroding their market capitalization, enterprise and brand value...
        
        
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This caused PriceWaterhouseCoopers, its auditor, to force AIG to change its method of valuing its derivatives and products. This caused a sharp decline in the valuation of those derivatives.
Soon, its credit rating was downgraded, triggering terms in their derivatives contracts that required AIG to come up with an additional $14...
        
        
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