According to a letter released Tuesday by the House Committee on Oversight and Government Reform, which held a hearing on the firm’s downfall, federal regulators warned AIG executives of a "material weakness" in the company’s books five months before the insurance giant had to be rescued by an $85 billion government bailout. The federal Office of Thrift Supervision (OTS) wrote AIG on March 10, 2008 that its asset valuations "lacked the accuracy and granularity necessary to understand the impact… on AIG’s accounting and financial reporting."
MotherJones Blog: Why AIG Went Down
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