The price of common stock issued by American International Group Inc., New York, fell 8.05% today and ended at $50.95.[@@]
The stock, which trades on the New York Stock Exchange, suffered its biggest 1-day drop since October and has fallen 30% since Feb. 14, when it was announced that AIG was subpoenaed by New York Attorney General Eliot Spitzer’s office and the U.S. Securities and Exchange Commission.
AIG has lost about $51 billion of market value since Feb. 14.
“Rating agencies have downgraded AIG, which is a cause of some concern,” says Thomas Russo, a buy-side analyst at Gardner Russo & Gardner, Lancaster, Pa.
“AIG hasn’t filed its 10-K, which is also causing some concern,” Russo says. “And there is the concern about AIG’s finite risk arrangement. All these things have come together to create an atmosphere of uncertainty, and some investors are selling because they are unwilling to bear such uncertainties.”