Pre-September 2008: The AIG Crisis Over the years‚ AIG built upon its premier global franchises in life and general insurance by expanding into a range of financial services businesses. One of these‚ created in 1987‚ was AIG Financial Products Corp. (AIGFP)‚ a company that engaged as principal in a wide variety of financial transactions for a global client base. In 1998‚ AIGFP began to sell credit default swaps to other financial institutions to protect against the default of certain securities
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Bailout Ethics Americans are outraged. Billions of taxpayer dollars were committed last year to rescuing firms such as Citigroup and the American International Group (AIG). Earlier this year‚ several companies who received Troubled Asset Relief Program (TARP) assistance were awarding top executives with extravagant bonuses. According to the Wall Street Journal‚ the U.S. government lent $238 billion in TARP taxpayer funds to almost 700 banks; 44 of these banks have repaid a $71 billion (Johnston
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GENERAL MOTORS BAILOUT PROBLEM Introduction Founded in 1908‚ General Motors has been one of the largest corporation and the second largest automaker in the world coming after Toyota. For 77 consecutive years from 1931 to 1908‚ GM has been a leading automaker and marketer as ranked by the total number of units sold yearly. General motors have also been a leading employer not only in the United States but also in other parts of the world where it operates. However‚ the company has been seriously
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AIG Accounting Scandal Contents 1.0 Introduction ………………………………………………. 2 1.1 Overview of AIG …………………………………….. 2 2.0 Scandal Methodology Used by the Company………… 3 2.1 Accounting Practices Errors ……………………….. 3 3.1 Ways to Hide Accounting Improprieties ………………. 4 4.1 Who the scandal effected ………………………………. 7 5.1 Recommendations ………………………………………. 8 6.1 Conclusions ………………………………………………. 9 7.1 References ………………………………………………. 10
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Properly accounting for subsequent events is important because investors’ opinions could be dramatically altered by the events and transactions that occur after year end. If subsequent events are not given proper consideration‚ the financial statements that are issued at year-end may be misleading. Accounting Standards Codification (ASC) 855 provides guidance on the proper accounting for and disclosure of subsequent events. Due to the potential impact subsequent events may have on the financial statements
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knew the extent of Ireland’s budget deficit. The EU was worried about the contagion effect‚ that if the Irish economy went bust‚ it would have a dramatic effect on the countries within the EU. Another reason for the bailout was that financial leaders believed that “the bail-out money a move to help restructure the banking sector.”[2] “RBS and other companies have invested heavily in Ireland. RBS‚ which is partially state-owned‚ has £53billion exposure to Irish loans – of which more than £40billion
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and to enjoy‚ not restrict. What most people fail to realize is that the video game industry‚ like the film industry‚ is heavily regulated with a strict code of parental guidelines already in place. Even the game consoles to play these violent games have parental controls. What I fail to understand is that some parents believe its okay to give their children 18+ rated games even though they are well under that age‚ and say that these games are the sources of violence between children. If parents would
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for GM and Chrysler‚ and to keep making auto loans available for car buyers. Ford Credit planned to use funds from the Term Asset-Backed Securities Loan Facility (TALF)‚ a government program for auto‚ student and other consumer loans. The auto bailout proposal from the Big 3 auto companies totaled $34 billion in government loans. In return‚ the companies promised to fast-track development of energy-efficient vehicles‚ and consolidate operations. GM and Ford agreed to streamline the number of brands
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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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AIG Contents Introduction This report deals with the American International Group (AIG) scandal of 2008. Before the collapse of AIG and its credit reduction‚ AIG was the largest insurer in the world with total annual revenue of $110 billion. On September 2008‚ AIG’s credit rating was downgraded‚ and AIG was without enough collateral for credit default swaps sold to banks around the world forcing AIG to accept a massive federal bailout package from
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