"Updated: 06:14 AM EDT Wall St to open firm on cheaper oil, AIG seen hit By Marie Maitre, Reuters
PARIS, May 2 (Reuters) - Oil prices down to $49 a barrel and fresh signs of merger activity could lift Wall Street on Monday, but American International Group could be hit by news it would restate more than four years of financial reports.
The world's largest insurer by market value estimated that the restatement would slash $2.7 billion from its net worth, $1 billion more than its original $1.7 billion estimated reduction at the end of March.
In a 10-page statement released on Sunday, AIG tallied a long list of improper actions that forced it to delay the filing of its annual 10-K report for 2004 with the U.S. Securities and Exchange Commission for a third time."
Reuters, and especially Dow Jones reporters are quite poor at reading financial documents. Thesaurus in hand, they ar trying to spin a soap opera to increase readership. If U can read the statement, THE NET HIT WAS 300 Million. Not 2.7 Billion. Rest assured AIG knows the derivative gains are volatilie and will gladly puke out 100 mill or so to stabilize thats exposure. This is a much better result than I would have hoped for. It will take time for large shareholders to carefully read, or have explained to them the net effect of the disclosure.