Conseco shares tank on loss

CARMEL, Ind. (WISH) - Part of the Dow's drop includes shares in Carmel-based Conseco, Incorporated. Its stock fell after Conseco announced that its auditor is questioning the company's ability to stay in business.

"I think there are real concerns. Certainly for employees at Conseco now as well as the community in general," said Gerry Dick, Inside Indiana Business.

1900 people work at Conseco's Carmel Headquarters. On Monday, Conseco posted a net loss of more than $400 million in the fourth quarter of 2008.

Conseco said that it is delaying the filing of its annual report until on or before March 17.

"Investors don't like uncertainty. And this raises all types of uncertainty," said Professor William Rieber, Butler University.

Conseco has faced other challenges in its 30-year history. It declared and then emerged from bankruptcy several years ago. Observers said it's no shock that Conseco may be facing another serious challenge.

"Just because they're part of the financial sector, so the entire financial sector is in turmoil it's not surprising that Conseco is part of that," said Professor Rieber.

Conseco CEO James Prieur sent a memo to employees on telling them, in part: "We remain confident that we have the liquidity and the capital to meet our obligations."

"The CEO is saying, "Hey look, we have a good business model, we have strong financials, our auditors are trying to be fiscally responsible, everything's going to work out well. Obviously this is a story that's going to play out in the coming weeks," said Dick.

24-Hour News 8 asked a Conseco spokesperson on Monday if the company would be eligible for tarp money the federal money used to bailout struggling banks. He said it is not and that it's not something the company is looking at.