article introduces credit default swaps and explores the problems of the credit derivatives. By analyzing the AIG’s bailout‚ the article 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
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Running head: AIG BAILOUT AIG Bailout Clari McGougan‚ Shawna Wilson‚ Keasha Kessler‚ Lashonda Edwards‚ Dale Ballard‚ and Michael Baltzelle University of Phoenix AIG Bailout The main ethics categories and theories involved in the American International Group (AIG) bailout are duty based ethics which has its pros and cons‚ and the theory is deontological which puts the rightness of an action before good. The pros of duty based ethics are equal rights are important to every person
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Qs.4. Could anything have been done differently at Lehman Brothers to prevent what happened? Explain. Answer: As Lehman Brothers & their manger were responsible for what happened‚ there are many things that could have done to prevent it. Things that could have done: 1.By ensuring social responsiveness & responsibilities: Managers social responsibilities go beyond making profits to include protecting and improving society’s welfare. On the other hand social responsiveness is when a company
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AIG Bailout & Stakeholder Analysis In September 2008‚ the American International Group‚ AIG‚ the largest insurance company in the United States‚ suffered from the bad debts incurred insuring mortgage-backed securities. As a result‚ within a matter of three months‚ AIG reported a startling quarterly loss of $61.7 billion‚ largest in the U.S corporate history. Instead of watching this global insurance giant fall on its keens‚ the U.S. government has decided to lend a helping hand by bailing
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A bailout could be done for mere profit‚ as when a predatory investor resurrects a floundering company by buying its shares at fire-sale prices; for social improvement‚ as when‚ hypothetically speaking‚ a wealthy philanthropist reinvents an unprofitable fast food company into a non-profit food distribution network; or the bailout of a company might be seen as a necessity in order to prevent greater‚ socioeconomic failures: For example‚ the US government assumes transportation to be the backbone of
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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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What went wrong at AIG? Despite US$110 billion in annual sales and assets in excess of US$1 trillion‚ on the 16th of September 2008‚ AIG accepted the Federal Reserve’s US$85 billion rescue package in order to prevent itself from facing a Chapter 11 filing. In exchange‚ AIG had given a 79.9% stake in the company to the government and also the right to suspend dividends previously issued to common stock and preferred equity. In all‚ US$184 billion in shareholder value was wiped out in less than a
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?What could have happened before? Plenty of years before the actual Jack visited the hotel‚ someone had already been there. The funny thing is that it’s someone who looks like him. Anybody could swear it’s him. But how is it possible? More than 40 years had passed and the man in the picture (who looks like he’s in his mid-forties) was still alive and all‚ visiting the hotel (again)? Some old people living in the town‚ who were relatively close to the hotel owners‚ say that nobody really knew the
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What Could be Done to Improve the Lives of the Elderly One of the solutions is‚ that the government should make the right move and start supporting elderly financially‚ as for helping balancing the huge numbers of dissatisfied senior citizens in Lithuania. We all know‚ that after a person retires from his work‚ he is no longer capable of making his own money. A person becomes dependable from the governmental income‚ which is nerve racking‚ because the daily needs are far more expensive than
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Priscilla Hatch Personal Values and Organizational Ethics Case: The GM Bailout Stephen Jackson – Instructor January 22‚ 2013 1. How would Locke‚ Smith‚ and Marx evaluate the various events in this case? They would evaluate this case by claiming that the government ownership of companies is the kind of government ownership of the “means of production”. (Smith – the “father of modern economics” who is the originator of utilitarian argument for the free market. According to Smith‚ when
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