I bought AIG for my retirement account last month, when New York Attorney General Eliot Spitzer indicated that he expects to reach a civil settlement with the company. Today, Mr. Spitzer filed a civil complaint against the company and AIG’s stock rallied 3% on optimism that former management seems to be the main target of the lawsuit. AIG still has a lot of headline-risk associated with it as it faces charges from other regulators. However, it is very encouraging that AIG seems to be fully co-operating with authorities and current management has taken steps to restore the company’s credibility. My original thesis for the investment still holds and I’m betting that AIG will turn out to be a winner over the long-term.

Comments are closed.