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Byline: Brad Finkelstein
New York-Goldman Sachs has issued an analyst report warning investors to stay away from American International Group here because of the problems in its financial products unit.
Analyst Thomas V. Cholnoky said investors should stay on the sidelines regarding AIG because of the likelihood that the company would need to raise capital.
"The central tenet of our 'Don't buy AIG' argument is simple: the intricacies of AIG's business are so complex that management may not even know the extent of the company's ultimate exposures, let alone losses. We note that each quarter's disclosures continue to provide incrementally concerning information regarding dangerous exposures," the report said.
Goldman Sachs said it is not attempting to predict how much ...
Source: HighBeam Research, Goldman Cautions Investors on AIG's Stock.