AIG (American International Group)

[Link] the company profile,total assets and revenues organization and operation

AIG operates in the insurance and financial services industry, providing a wide range of insurance
products amd services to individuals, businesses,and [Link] is a global company with
operations in more than 80 countries and jurisdictions,making it one of the largest and most diversified
insurers in the [Link] both personal and commercial [Link] of March 31,2023 AIG’s total
invested assets, excluding fortitude Re funds witheld assets was 285.2 [Link] revenue 56.437
[Link]’s organizational structure is extensive and includes multiple subsidiaries, divisions and
business [Link] property casually,AIG life retirement,AIG Global Assets Management,AIG
Investments,AIG International.

[Link] the scandal happen

AIG was a major player in the market for credit default [Link] are financial instruments that
provides insurance against the default of bonds and other debt [Link] sold CDS to various
institutions, promising to pay them if the underlying assets (mortgage – backed securities defaulted).So
while AIG’s action weren’t scandalous in themselves to cover the resulting losses played a significant
role in the larger financial crisis of 2008

[Link] of money involved

AIG’s swaps on subprime mortgages pushed the otherwise profitable company to the brink of
bankruptcy. As the mortgages tied to the swaps defaulted, AIG was forced to raise millions in capital. As
stockholders got wind of the situation, they sold their shares, making it even more difficult for AIG to
cover the swaps.

[Link] WHO WERE INVOLVED AND WHAT HAPPEN TO THEM

1. Maurice R. “Hank” Greenberg:He was the CEO of AIG for nearly four decades before resigning in 2005.
Although he was no longer with the company during the crisis, his tenure and leadership style have been
closely examined in relation to AIG’s financial troubles. After his departure, Greenberg faced legal
battles and regulatory scrutiny but was not charged with any criminal wrongdoing.

2. Robert B. Willumstad:He succeeded Maurice Greenberg as CEO of AIG in 2005 but served for a
relatively short period until 2008. Willumstad faced criticism for AIG’s role in the financial crisis during
his leadership. After leaving AIG, he had a limited role in the financial industry and pursued other
interests.

3. Edward M. Liddy:Liddy was appointed as CEO of AIG in September 2008 during the height of the
financial crisis, following the government bailout. He played a key role in helping AIG navigate through
the crisis and stabilize the company. Liddy resigned in 2009 after overseeing AIG’s restructuring efforts.

4. Ben Bernanke and Timothy Geithner: Ben Bernanke was the Chairman of the Federal Reserve, and
Timothy Geithner was the President of the Federal Reserve Bank of New York during the financial crisis.
They played instrumental roles in orchestrating the government bailout of AIG and other financial
institutions. After their roles in government, both Bernanke and Geithner continued to be involved in
economic and financial policy discussions.

5. Lawrence Summers:As the Director of the National Economic Council in the Obama administration,
Summers was a key figure in shaping economic policy responses to the financial crisis, including
decisions related to AIG. He continued to be a prominent economist and policy advisor after leaving
government service.

[Link] WHO WERE AFFECTED

1. AIG Employees:Many AIG employees faced job insecurity and layoffs as the company struggled
financially. The uncertainty surrounding AIG’s stability had a significant impact on its workforce.

2. Shareholders: AIG’s stock price plummeted during the crisis, causing significant losses for
shareholders, including individual investors and institutional investors who held AIG shares in their
portfolios.

3. Policyholders:While AIG was ultimately stabilized with government assistance, policyholders were
concerned about the financial stability of the company. Some individuals and businesses may have
considered switching their insurance policies to more financially stable insurers.

4. Taxpayers:The U.S. government’s bailout of AIG involved the use of taxpayer funds to prevent the
company’s collapse. This expenditure raised concerns among taxpayers about the use of public money
to support a private company.

[Link] and Policymakers:Regulators and policymakers were under scrutiny for their oversight of
the financial industry leading up to the crisis. The events surrounding AIG and other financial institutions
prompted calls for regulatory reforms to prevent similar crises in the future.

6. Economists and Analysts:Economists and financial analysts closely studied the AIG bailout and its
implications for the broader economy. The crisis prompted discussions and debates among experts
about the causes of the financial crisis and the effectiveness of government interventions.

7. Public Perception: AIG became a symbol of Wall Street excess and corporate bailouts in the eyes of
many Americans. The controversy surrounding the company and the use of taxpayer funds to rescue it
contributed to public distrust of financial institutions and government.