Ethical Risks at AIG
Coping with Financial and Ethical Risks at AIG
Coping with Financial and Ethical Risks at AIG
American International Group (AIG) had grown to become a large and well respected insurance company throughout the world. But, this was short lived when AIG collapsed in 2008...
American International Group, Inc. (AIG) reported bogus transactions that hid losses and inflated its net worth. AIG inflated reserve funds that were to be used for paying claims by millions of dollars and that AIG's CEO Maurice Greenberg repeatedly directed AIG traders...
The Demise of AIG:
A Corporate Downfall
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...
William K. Sjostrom, Jr.∗
Abstract On February 28, 2008, American International Group, Inc., the then largest insurance company in the United States, announced 2007 earnings of $6.20 billion or $2.39 per share. Its stock closed that day at $50.15 per share. Less than seven months...
system. In this crisis, we see clearly the importance of a separation between the two roles of different types of bank. Besides the Government Act, we have to point out the very important role of agencies in the financial crisis. In particular, they are Fannie Mae -the Federal National Mortgage Association-...
Financial market & institution
1. The main factor caused Bear’s failure: two failed hedge funds during the summer 2007 which created domino effect on the entirety of the company. Both Bear’s High-Grade Structured Credit Strategies Enhanced Leverage Fund and its High-Grade Structured Credit Strategies...
LEADERSHIP AT AIG: DOES STYLE MATTER?
This case deals with executive leadership styles. In particular, this case deals with American International Group, the world’s insurance company, and its CEO Maurice “Hank” Greenberg. Greenberg, an autocratic leader, was recently deposed...
Question: What were the major forces behind the credit crisis of 2007 and 2008?
The credit crisis started at 2007 in United States subprime mortgage industry. The effects of the subprime collapse spread throughout the United States economy and into global markets. The impact has been especially...
was bound to bring much controversy as a result of the dramatic increase in executive compensation over the last decade and the recent massive failure of many large companies.
Adding to the public interest was the 2008 United States Presidential Election, which featured two candidates taking...
rationalization sounds fine within the confines of the rules at that time, we would have taken a pro-active approach which would have been to intervene and regulate the sub-prime mortgage before the episodes of Bear Sterns, Lehman and AIG even happened and not take the” mop-up the mess after the bubble pops” approach...
AIG - The Fallen Giant - Presentation Transcript
1. F A L L E N G I A N T Case Study of American International Group, Inc. J E N N I F E R D E M A R S
2. TABLE OF CONTENTS (hyperlinks) I BACKGROUND II CAUSES OF FAILURE III RISKS TAKEN IV LESSONS LEARNED CONCLUSION REFERENCES
3. AIG Building, 70...
Building an Adaptive Regulatory System in a Global World Keeping a Balance
1 3 6 7 8
chapter 2 Lessons from the Crisis—Jean Tirole
Part I: What Happened? Part II: How Should the Financial System Be Reformed?
chapter 3 The Future of Banking Regulation— Jean-Charles Rochet
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spring 2008 the housing bubble burst after Wall St amounted large losses on risky mortgage securities causing a housing crash and instilling fear of what was worse to come in the public eye. Mighty investment banks began to crumble as their debts grew and cash sunk. Investment banks are important financial...
to the problem at Lehman Brothers. What was the exposure that put Lehman Brothers at risk? What did Lehman Brothers seek from the regulators? Was there a precedent for the request? What was the reasoning for the decision by the regulators and the government? What did the Federal government learn from...
leading, to poorly tolerated periodic bubbles and bursts” (Petersen, 2011). This has become a
norm of every decade, as crises have become more frequent and severe. This paper will aim
to look at how the evolution of financial markets influenced the international financial
1. Failure Analysis:
Identify the major factors that contributed to Bear Stearns’s failure? Who stood to benefit from its implosion? How did Bear Stearns’s collapse differ from the ‘Long Term Capital Management’ failure a decade earlier? Whatcould Bear Stearns havedonedifferently to avoid...
Enron's ex-role: model of ethics
For the gurus of socially responsible investing, what lessons from a tarnished star?
By Laurent Belsie, Staff writer of The Christian Science Monitor / March 4, 2002
Perhaps the ultimate irony about Enron Corp...
income. If it facing financial problem may cause of failure, the government will provide assistance to prevent its failure. Therefore, if the cost of a bailout is less than the cost of the failure to the economy, a government may decide that a bailout is the most cost-effective solution. "Too big to fail"...
Working Paper No. 698
$29,000,000,000,000: A Detailed Look at the Fed’s Bailout by Funding Facility and Recipient by James Felkerson University of Missouri–Kansas City December 2011
The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and...