American International Group Inc. reported a record $5.29 billion fourth-quarter loss, down from a $3.44 billion profit for the period in 2006.
Management said results for the quarter were affected by the continuing deterioration of the U.S. residential real estate and credit markets and announced the head of its financial products unit, which caused the loss, would be stepping down.
The company said it was hurt in the fourth quarter by an $11.12 billion pretax write-down related to AIG Financial Products Corp.'s (AIGFP) super senior credit default swap (CDS) portfolio. AIG also experienced over $3.3 billion in additional pretax investment charges related to the credit market.
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