Seven Things You Need to Know About American International Group Inc (AIG)

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Foolish bottom line
Rather than persuading me I can get a great company for a steal, instead American International Group Inc (NYSE:AIG)’s low valuation unnerves me: What crisis-related issues lurk on this bank’s balance sheet? And for that matter, why is AIG even a bank?

Throw in the poor ROE and the sky-high P/E, and this just isn’t an investment for the faint of heart — a club to which I belong. I’m bearish on Bank of America Corp (NYSE:BAC) for what may lurk in its dark corners, but I’d take B of A in a Wall Street minute over AIG, even given the strong performance of the stock: The market isn’t always right.

The article 7 Things You Need to Know About AIG originally appeared on Fool.com.

Fool contributor John Grgurich owns shares of Goldman Sachs, and JPMorgan Chase. Follow John’s dispatches from the not-so-muddy trenches of big-banking and high-finance on Twitter @TMFGrgurich.The Motley Fool recommends American International Group (NYSE:AIG), Goldman Sachs, and Wells Fargo. The Motley Fool owns shares of American International Group, Bank of America, JPMorgan Chase, and Wells Fargo and (NYSE:WFC) has the following options: Long Jan 2014 $25 Calls on American International Group.

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