AIG Reports $7.8 Billion Loss Tied to Derivatives and Subprime Market

American International Group on Thursday reported a $7.8 billion loss for the first-quarter of 2008 and plans to raise $12.5 billion in capital to shore up its finances.The giant carrier said it lost $9.11 billion on its portfolio of derivatives and another $6.82 billion in losses from other investments, most of it from investments in the sub-prime mortgage market. "The severity of the unrealized valuation losses and decline in value of our investments were beyond our expectations,'' AIG Chairman Martin Sullivan said in a statement.The latest losses bring AIG's total write-downs ...