in a position where he is forced to make some very unfavorable decisions as the investment banks, such as Lehman Brothers and Bear Sterns, begin to fall. When Bear Sterns was almost forced into bankruptcy, the Department of Treasury offered them a bailout, and was able to save the bank. Richard Fuld, CEO of Lehman Brothers, expects the same treatment when his bank begins to fall. Because of some of the investments Lehman Brothers had made, outside investors were wary of putting money into this bank
Words: 342 - Pages: 2
INSIDE JOB—A documentary Business, Ethics and Governance 18 September 2011 Submitted by: Suzanne M. Chevalier Inside Job is a documentary written and directed by Charles Ferguson, and narrated by Matt Damon. The film chronicles the economic collapse of 2008 and the events which led up to it. The film is divided into five parts; 1) How We Got Here, 2) The Bubble, 3) The Crisis, 4) Accountability, and 5) Where We Are Now. The parts of the film come together to uncover the corruption
Words: 1769 - Pages: 8
International Group (AIG) indicates that it is a multinational insurance corporation that operates across the globe with around 88 million customers in its database. The company accounts for employing more than 64000 people across 90 countries. There are three major types of businesses that are currently operated by the company and these include AIG Property Casualty, AIG Life and Retirement and United Guarantee Corporation. These are the three important divisions that are noted in respect to AIG and they accounts
Words: 1423 - Pages: 6
Fǻmǿųș Șǿňģș Țħǻț Ẅěřě Ẅřįțțěň Ǻbǿųț Čěŀěbřįțįěș ȘİĐĚBǺŘ Invasion of the Home Snatchers By now, most of us know the major players. As George Bush's last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously selfserving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton's former
Words: 13104 - Pages: 53
International Accounting Standards Board (IASB) did not see FVA as a legitimate accounting technique o Agreed to FVA only under political pressure E.U. Figureheads (i.e., heads of state) o Initially, wanted to rely on advice of IASB o After the collapse of AIG and increasing use of FVA by banks in U.S., the EU figureheads had to allow banks in E.U. to have the same tool for their financial reports as banks in U.S. o Allowed FVA in order to avoid putting E.U. banks at a competitive disadvantage 10/3/11
Words: 1628 - Pages: 7
US Financial Crisis US Financial Crisis This paper aims to describe the US Financial Crisis in terms of causes, impact, and remedial actions taken by the public and private sectors. It presents the thesis that the financial crisis is also a crisis of values that prompts a reevaluation of the premises of American capitalism. In particular, that prosperity is the foundation of peace and order. A review of literature provides the basis for a short commentary on the subject. Preliminary review
Words: 9783 - Pages: 40
this economic crisis by issuing huge bailouts, both to businesses and individuals. Approximately $12-$14 trillion was issued by the US government. The Federal Reserve lent funds to a wide range of institutions and began buying private sector debt. Ironically, the firms that helped to create the crisis were the ones to receive the most help. They saved individual firms that were deemed too crucial to allow to fail, such as Bear Stearns and AIG. The bailout saved the financial institutions by
Words: 522 - Pages: 3
Insurance Sector Analysis Project Details: Subject: Financial Management Topic: Insurance Sector analysis Teacher in charge: KB sir Made by: 1. Abhinav Aggrawal, BFIA 1A Roll number: 75101 2. Akhil Bedi, BFIA 1A Roll number: 75107 3. Jessica Singh BFIA 1A Roll number: 75124 Teacher Remarks: Contents Insurance Sector Analysis 1 Project Details: 2 Acknowledgement 4 An Overview of the project: 5 Objective: 5 A Brief History 8 Insurance Sector:
Words: 5451 - Pages: 22
lack of morals and responsibility that took place during this past recession. Investors and companies bet on Mortgage-Backed-Securities and not only that, but companies tried to make more profit by ensuring them in case of default. Also the fact that AIG not only insured the claims but acted irresponsible in the sense that they did not set aside the necessary capital to pay out in case of these policies failing. Blinder talks about these types of players
Words: 1046 - Pages: 5
be taken to avoid their potential procyclical effects. Journal of Derivatives & Hedge Funds (2011) 17, 122–132. doi:10.1057/jdhf.2011.6; published online 9 June 2011 Keywords: mark-to-market; fair value accounting; credit default swaps; derivatives; AIG INTRODUCTION And it came to pass at the end of two full years,
Words: 6287 - Pages: 26
