AIG’s stock price took a major hit yesterday due to a combination of missed earnings at a subsidiary company, payment of a $1.64 billon fine, and a drop in income from derivatives.
One of the factors driving the fine was AIG’s failure to pay workers compensation premium taxes in a number of jurisdictions in past years. This malfeasance, coupled with contingent commissions, fabricated insurance quotes and other anti-competitive behavior, is a growing stain on a once-proud company, a stain that doesn’t appear to be fading.
May
12
