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Accounting for the Abuses at AIG
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******************************** Accounting for the Abuses at AIG http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1180 When accounting problems at American International Group surfaced last winter, it looked like a small matter next to the corporation-busting scandals of the Enron era. But AIG directors acted as if the company's very survival was at stake, removing Maurice Greenberg as CEO and later forcing him to step down as chairman. The heart of the problem is this: No one can be sure how big the scandal will grow, because it involves business relationships, insurance products and accounting practices so arcane that few people understand them -- including a controversial product known as "finite insurance."
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