American International Group and the Bonus Fiasco On September 16‚ 2008 AIG suffered a liquidity crisis following the downgrade of its credit rating. In response‚ the federal government allotted AIG 85 billion in a bailout to keep the firm afloat in exchange for an equity stake in the company. In a very controversial move‚ AIG paid out more than 500 million in salaries and bonuses to senior employees after accepting the federal assistance money. This outraged the public‚ and in turn politicians
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Coping with Financial and Ethical Risks at American International Group (AIG) 1. Discuss the role that AIG’s corporate culture played in its downfall. The corporate ethical culture at AIG was far from a good one. The corporate culture focused on high risk taking schemes that were only there to focus mostly on short-term financial gain. The AIG Financial Products unit specialized in derivatives and other complex financial contracts that were tied to subprime mortgages or commodities. While its
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Fiasco‚ along with rappers Common‚ Mos Def‚ and Talib Kweli‚ has been credited as a pioneer of the conscious hip hop movement‚ which focuses on social issues.[51] Subjects touched upon on Lupe Fiasco’s Food & Liquor include absent parents‚ terrorism‚ Islam and religion‚ war‚ and prostitution.[51] Fiasco attributes his interest in social issues to his highly cultured upbringing‚ as he describes his mother as "very intellectual" and his father as a "Renaissance man".[51] He rejects the misogyny
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native rapper‚ Lupe Fiasco. The song depicts the word bitch in the many forms that it is used in today’s urban society. The song starts with a dark weary synthesizer and a heavy deep 808 drum pattern that reflects the sound that is used in many of today’s popular club/party songs. The words to the song shine a stereotypical light on “bad bitches‚” but there is a twist. Fiasco highlights 3 significant points which is the basis of the song‚ “Bitch bad‚ woman good‚ lady better” (Fiasco‚ Bitch Bad). By
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Abstract AIG traces its root to 1919‚ when American Cornelius Vander Starr established a general insurance agency‚ American Asiatic Underwriters‚ in Shanghai‚ China. Since then‚ an enterprising spirit‚ ingenuity‚ and tenacity have built the company into one of the world’s leading insurers. Today‚ AIG is focused on what it has been known for since the beginning: the willingness and ability to provide insurance coverage to meet the diverse needs of its clients. American International Group‚ Inc. (AIG) is
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describes the regulation gap in the CDS market and states the regulation reform after the crisis. Part I is background‚ generally introduces the Wall Street crisis. How it happened? What consequence it has? Part II is mainly about AIG’s CDS business: how AIG got involved in the crisis and why the biggest world insurance company suddenly collapsed. Part III is about credit default swaps: definition‚ construction‚ and problems. Part IV is concerned on the regulation reform after AIG’s failure. Wall Street
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Who is AIG? American International Group‚ Inc. (AIG) is a leading provider of insurance and retirement solutions. Headquartered in New York City‚ AIG has principal offices for its international operations located in London‚ Hong Kong and La Defénse. AIG companies serve commercial‚ institutional and individual customers in more than 130 countries and employs 63‚000. Through its multiple company segments‚ AIG also provides services in the life insurance and retirement services industries. AIG is divided
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1. What‚ if any‚ were the relevant institutional voids in China? The relevant institutional voids for AIG in China were: 1. Macro level political and social context- media and non-governmental institutions had very little influence‚ but the government did‚ there was a political power monopoly. 2. Macro level openness of the economy – the Chinese economy lacked openness to foreign direct investment. 3. Product markets – there was weak property right protection‚ in the Chinese market there was
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Seattle‚ Washington danryoung@netzero.net Presented the Spring Meeting of the CAS New Orleans‚ Louisiana May 6‚ 2009 The Story of the AIG Accounting Scandal The Companies The Participants Regulatory Scrutiny Intensifies The Prosecution Case The Defense Case Relevant Laws and Regulations The Fate of the Participants The Companies AIG Overview (2007) World’s largest insurance and financial services company 93‚000 employees Business in 130 countries
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The Demise of AIG: A Corporate Downfall Crystal Ruff Globe University ABSTRACT This paper focuses on the financial demise of AIG and the corporate culture that pushed it there. It lays out specific factors that contributed to the bailout of the company and the ethical conduct of the executives that contributed to the poor decisions that led the company to a massive failure and ultimately‚ a bailout. Even though the company is on the road to recovery‚ its reputation has been damaged and some
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