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AIG’s Mortgage Woes Hit Hard 

Aug 07, 2008By

Insurance giant American International Group Inc. [stock AIG][/stock] said Wednesday after market close that it lost $5.36 billion during the second quarter, as mortgage-related exposure continued to chew away at the bottom line; speculation that the company will need to raise additional capital helped shares in the world’s biggest insurer fall the most since the stock market crash in 1987 on Thursday morning, as a result.