Unconventional Mortgages and Loans

AIG is being investigated for potentially skewing the value of certain swap portfolios which were backed by subprime mortgages. Attorney General Michael Mukasey claims that they misrepresented the worth of those contracts. AIG claims that the incorrect appraisal was simply due to the difficulties of valuing complex portfolios and because of the subprime mortgage crisis. Evidently, this is the most common defense to a charge of this nature.