This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7239511.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 2 Version 3
Auditor warning hits AIG shares Auditor warning hits AIG shares
(about 4 hours later)
Shares in the world's largest insurer, American International Group (AIG), have fallen by more than 10% after its auditors voiced concerns. Shares in the world's largest insurer, American International Group (AIG), have fallen by more than 11% after its auditors voiced concerns.
There was a "material weakness" in how AIG valued defaults on credit, the auditors PricewaterhouseCoopers said.There was a "material weakness" in how AIG valued defaults on credit, the auditors PricewaterhouseCoopers said.
AIG, the shirt sponsor of football team Manchester United, has previously said that it did not face major exposure to problems in the US housing market.AIG, the shirt sponsor of football team Manchester United, has previously said that it did not face major exposure to problems in the US housing market.
However, analysts said the auditors' comments put a question mark over this.However, analysts said the auditors' comments put a question mark over this.
AIG has divisions which insure and invest in sub-prime loans, which are made to people with poor or non-existent credit histories.AIG has divisions which insure and invest in sub-prime loans, which are made to people with poor or non-existent credit histories.
In recent months, sub-prime loans have seen a surge in defaults, a factor that contributed to the recent and sudden freezing of world credit markets.In recent months, sub-prime loans have seen a surge in defaults, a factor that contributed to the recent and sudden freezing of world credit markets.
AIG said it was "still accumulating market data in order to update its valuation" of the sub-prime portfolio.AIG said it was "still accumulating market data in order to update its valuation" of the sub-prime portfolio.
However traders feared that the firm might have more mortgage debt to write off.However traders feared that the firm might have more mortgage debt to write off.
By early afternoon trading in New York, AIG shares were $5.55, 11% lower at $45.13. By the close of trading in New York, AIG had dropped $5.94, or 11.7% to $44.74.