Risks at American International Group (AIG) I. Introduction American International Group (AIG) a leading American insurance organization operating in 130 countries. Established in Shanghai, China by Cornelius Starr; Starr was the first to sell insurance to the Chinese. In the 1960s Starr handed control of AIG to Maurice Greenberg who remained the company's chief executive officer until 2005. II. Response to Question #1 If the corporate culture of AIG was a contributing factor in the downfall
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In the year 2008, the government helped create the Housing Bubble, the Great Wall Street Bailout and the Boom Bust Cycle. All of these crises were seen coming and could have been avoided. After causing these problems, the government tried to fix them. This only ended up making things worse. The Fed pushed off all financial problems, which made the blowup worse when it happened. The Housing Bubble began at the end of 2006. The prices of houses inflated quickly and then dropped just as fast. This
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According to the numbers, the company had brought in over $1 billion that year. In 2002, it came out that AIGFP had helped conceal the bad assets of PNC Financial services by setting up a “special purpose entity” to undertake the assets. By 2004, AIG had paid an $80 million fine for helping conceal these bad assets. Later in 2005, rumors about bad accounting practices were going around and Hank Greenberg stepped down as his role of CEO. When he did this, credit-rating agencies dropped AIG’s credit
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Goldman Sach vs. SEC By: Lemar Clayton The Goldman Sachs situation presents a leadership ethics dilemma. Is it okay for banks to bet against their customers to manage risk and hedge their bets? In fact, I’m willing to bet that opposing sides in the argument don’t even see this as a dilemma. “The senate subcommittee grilled Goldman executives for 11 hours because they clearly think that what Goldman did was morally wrong, if not illegal.” ("Sec charges goldman," 2010) Contrast
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American International Group (AIG)” Background American International Group, Inc. is a company whose operation began back in 1919. It was established back then by Cornelius Vander Starr as an insurance agency in Shanghai, China. AIG left china in 1949 after Starr had established himself as the westerner the sell insurance to the Chinese people. AIG headquarters then shifted from china to New York City, which is still the headquarters up to date. It is from here that AIG began its expansion tapping
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Corporate governance refers to the set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders in this case would include everyone ranging from the board of directors, management, shareholders to customers, employees and society. The
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AMERICAN INTERNATIONAL GROUP(AIG) COMPANY BACKGROUND AIG was started as a general insurance company by Cornelius Vanderr Starr in 1919 in Shanghai, China and begin a life insurance operation in 1921. AIG expand their business in mainland China by opening branches in Hong Kong, Vietnam and Philippines in 1925 and open the first office in New York in 1926. The organization spread their firm to Latin America in 1930-1939. During the world war 2, the business were suspended. Right after World War
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Reserve said that the companies that did receive bailouts, such as AIG, Fannie Mae and, Freddie Mac, clearly had the collateral and showed great promise of paying them back in the future, while Lehman Brothers did not. When Federal Reserve Chairman Ben Bernanke was asked how the Lehman case differed from that of American International Group Inc., which received $182 billion in taxpayer aid, Bernanke said there was a fundamental difference. They believed AIG, as the biggest insurance company in the U.S
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accelerate or decrease over the next decade? Why? Financial Institutions got a bailout By President Obama in 2009, Mortgage values dropped, financial institutions begin to Feel the pressure especially firms such as Bear Stearns that specialized in trading Mortgage backed securities. There was $61.7bn in losses with AIG, strong economy Out of more jobs can accelerate the next decade, there be a budget deficit. AIG got A $180bn bailout; while Bank of America got $45bn as well as JP Morgan Chase $25bn, Goldman
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Introduction GP Ocean Food Sdn Bhd, which was founded in 1980, is Malaysia’s first and biggest fully integrated seafood producer which includes activities encompass trawling, aquaculture of fish and prawns and seafood processing. It is also an investment holding company. This company advantageously located in the Federal Territory of Labuan, Malaysia in order to provide easy access to deliver the products. In addition, more than 70% of the sales are exported to US, EU countries, Japan and others
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