Seriously.....How?

[Pinky Winky]

AIG posts 1st profit in 2 years- Market Dispatches - MSN Money

How did AIG post a profit if it owes the public billions?

 

[Dino]

It is ok to post profits if they intend to use them to pay their debt back.

 

[PandaNin]

Profit is supposed to be calculated after all expenses have been taken into account. If they postpone payment on the debt they can call any income above expense a profit. Depending on how long they postpone repayment or stretch out the repayment they could be profitable every quarter. Then again, it's possible they are profitable because they used the infusion of cash to pay off most of their debt and they only have operating expenses that are covered by operating income. I don't have access to their books so I don't know.

 

[chrisjp]

how do we know thier "profit" is realy profit as it might be a ploy to hike up stocks. we all know they doctored the books

 

[dadofthree]

 

[head east busa]

no idea but I know farmers and Zurich own their personal lines of insurance now . And I work for farmers so All I can say is Job security
( Funny cause my younger brother works for aig personal lines in claims and I used to mess with him saying we were gonna buy them go figure.)