What of AIG?

Over the past 24 hours, i have received half a dozen calls/messagesasking me what about AIG?  Before I start that, let me point to a few of my posts on AIG:

Let me say that it took this long for the price to fall below where it was when I left the firm in 1992.  For many firms with significant slack assets, they could have resisted this fall in the stock price, but AIG could not.

Why not?  It is a complex firm.  Complex firms have a hard time splitting/understanding the results of their various business units.  Management’s view of free cash flow is cloudy.

With AIG, the best thing that they can likely do is spin/sell off their US Life and P&C arms separately or together.  Those units have a relatively easy to determine value.  WIth the cash, AIG can focus on improiving the remaining units.  If they can’t do that, AIG is heading for the scrap heap.

Call me a bear here.  I have no idea how good the current management team will be, but so many are mezmerized by the past of AIG.