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American International Group

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"AIG" redirects here. For other uses, see AIG (disambiguation).
American International Group, Inc.
Type Public (NYSE: AIG)
Founded 1919 in Shanghai, China
Founder(s) Cornelius Vander Starr
Headquarters American International Building
New York City, New York, U.S.
Area served Worldwide
Key people Edward M. Liddy (Chairman and CEO)
David L. Herzog (CFO and EVP)
Industry Insurance, financial services
Products Insurance annuities, mutual funds
Revenue ▼ US$ 110.064 billion (2008)[1]
Operating income ▼ US$ −106.761 billion (2008)[1]
Net income ▼ US$ −99.289 billion (2008)[1]
Total assets ▼ US$ 860.418 billion (2008)[1]
Total equity ▼ US$ 52.710 billion (2008)[1]
Employees 116,000 (2008)[1]
Website AIG.com

American International Group, Inc. (AIG) (NYSE: AIG), also known as AIU Holdings, Inc., is an American insurance corporation. Its corporate headquarters are located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London; continental Europe operations are based in La Défense, Paris, and its Asian headquarters office is in Hong Kong. According to the 2008 Forbes Global 2000 list, AIG was once the 18th-largest public company in the world. It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22, 2008.

AIG suffered from a liquidity crisis when its credit ratings were downgraded below "AA" levels in September 2008. The United States Federal Reserve Bank on September 16, 2008, created an $85 billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79.9% of the equity of AIG. The U.S. government revised the credit facility, and eventually increased the total amount available to as much as $182.5 billion.[2] AIG subsequently sold a number of its subsidiaries and other assets to pay down loans received, and continues to seek buyers of its assets. In March 2009, AIG faced public outrage and media and political backlash for its retention payments of $165 million. AIG employees faced hate mail and death threats, and multiple websites had sprung up attacking AIG.[3][4][5][6] As a result of public furor over retention payments to its employees, AIG is re-branding a majority of its business under AIU Holdings, Inc.. [7][8][9][10] FBIC, a non-profit organization fighting bad-faith insurance companies, ranks AIG eighth on its list of bad-faith insurers in a review of 655 insurer groups comprising of 3,693 insurer companies.[11]

Contents

[edit] History

The American International Building in lower Manhattan

AIG history dates back to 1919, when Cornelius Vander Starr established an insurance agency in Shanghai, China. Starr was the first Westerner in Shanghai to sell insurance to the Chinese, which he continued to do until AIG left China in early 1949—as Mao Zedong led the advance of the Communist People's Liberation Army on Shanghai.[12][13] Starr then moved the company headquarters to its current home in New York City.[14] The company went on to expand, often through subsidiaries, into other markets, including other parts of Asia, Latin America, Europe, and the Middle East.[15]

In 1962, Starr gave management of the company's lagging U.S. holdings to Maurice R. "Hank" Greenberg, who shifted its focus from personal insurance to high-margin corporate coverage. Greenberg focused on selling insurance through independent brokers rather than agents to eliminate agent salaries. Using brokers, AIG could price insurance according to its potential return even if it suffered decreased sales of certain products for great lengths of time with very little extra expense. In 1968, Starr named Greenberg his successor. The company went public in 1969.[16]

Beginning in 2005, AIG became embroiled in a series of fraud investigations conducted by the Securities and Exchange Commission, U.S. Justice Department, and New York State Attorney General's Office. Greenberg was ousted amid an accounting scandal in February 2005; he is still fighting civil charges being pursued by New York state.[17][18] The New York Attorney General's investigation led to a $1.6 billion fine for AIG and criminal charges for some of its executives.[19] Greenberg was succeeded as CEO by Martin J. Sullivan, who had begun his career at AIG as a clerk in its London office in 1970.[20]

On June 15, 2008, after disclosure of financial losses and subsequent to a falling stock price, Sullivan resigned and was replaced by Robert B. Willumstad, Chairman of the AIG Board of Directors since 2006. Willumstad was forced by the US government to step down and was replaced by Edward M. Liddy on September 17, 2008.[21]

[edit] Financial crisis

Further information: Subprime mortgage crisis, Financial crisis of 2007–2009, and Liquidity crisis of September 2008

[edit] Chronology of September 2008 liquidity crisis

On September 16, 2008, AIG suffered a liquidity crisis following the downgrade of its credit rating. Industry practice permits firms with the highest credit ratings to enter swaps without depositing collateral with its trading counter-parties. When its credit rating was downgraded, the company was required to post additional collateral with its trading counter-parties, and this led to an AIG liquidity crisis. AIG's London unit sold credit protection in the form of credit default swaps (CDSs) on collateralized debt obligations (CDOs) that had by that time declined in value.[22] The United States Federal Reserve Bank announced the creation of a secured credit facility of up to US$85 billion, to prevent the company's collapse by enabling AIG to meet its obligations to deliver additional collateral to its credit default swap trading partners. The credit facility provided a structure to loan as much as US$85 billion, secured by the stock in AIG-owned subsidiaries, in exchange for warrants for a 79.9% equity stake, and the right to suspend dividends to previously issued common and preferred stock.[20][23][24] AIG announced the same day that its board accepted the terms of the Federal Reserve Bank's rescue package and secured credit facility.[25] This was the largest government bailout of a private company in U.S. history, though smaller than the bailout of Fannie Mae and Freddie Mac a week earlier.[26][27]

AIG's share prices had fallen over 95% to just $1.25 by September 16, 2008, from a 52-week high of $70.13. The company reported over $13.2 billion in losses in the first six months of the year.[28][29] The AIG Financial Products division headed by Joseph Cassano, in London, had entered into credit default swaps to insure $441 billion worth of securities originally rated AAA. Of those securities, $57.8 billion were structured debt securities backed by subprime loans.[30] CNN named Cassano as one of the "Ten Most Wanted: Culprits" of the 2008 financial collapse in the United States.[31]

As Lehman Brothers (the largest bankruptcy in U.S. history at that time) suffered a catastrophic decline in share price, investors began comparing the types of securities held by AIG and Lehman, and found that AIG had valued its Alt-A and sub-prime mortgage-backed securities at 1.7 to 2 times the values used by Lehman[28] which weakened investors' confidence in AIG. On September 14, 2008, AIG announced it was considering selling its aircraft leasing division, International Lease Finance Corporation, to raise cash.[28] The Federal Reserve hired Morgan Stanley to determine if there are systemic risks to a financial failure of AIG, and asked private entities to supply short-term bridge loans to the company. In the meantime, New York regulators allowed AIG to borrow $20 billion from its subsidiaries.[32][33]

At the stock market's opening on September 16 2008, AIG's stock dropped 60 percent.[34] The Federal Reserve continued to meet that day with major Wall Street investment firms, hoping to broker a deal for a non-governmental $75 billion line of credit to the company.[35] Rating agencies Moody's and Standard and Poor downgraded AIG's credit ratings on concerns over likley continuing losses on mortgage-backed securities. The credit rating downgrade forced the company to deliver collateral of over $10 billion to certain creditors and CDS counter-parties.[36] The New York Times later reported that talks on Wall Street had broken down and AIG may file for bankruptcy protection on Wednesday, September 17.[37] Just before the bailout by the US Federal Reserve, AIG former CEO Maurice (Hank) Greenberg sent an impassioned letter to AIG CEO Robert B. Willumstad offering his assistance in any way possible, ccing the Board of Directors. His offer was rebuffed.[38]

[edit] Federal Reserve bailout

On the evening of September 16, 2008, the Federal Reserve Bank's Board of Governors announced that the Federal Reserve Bank of New York had been authorized to create a 24-month credit-liquidity facility from which AIG could draw up to $85 billion. The loan was collateralized by the assets of AIG, including its non-regulated subsidiaries and the stock of "substantially all" of its regulated subsidiaries, and with an interest rate of 850 basis points over the three-month London Interbank Offered Rate (LIBOR) (i.e., LIBOR plus 8.5%). In exchange for the credit facility, the U.S. government received warrants for a 79.9 percent equity stake in AIG, with the right to suspend the payment of dividends to AIG common and preferred shareholders.[20][24] The credit facility was created under the auspices of Section 13(3) of the Federal Reserve Act.[24][39][40] AIG's board of directors announced approval of the loan transaction in a press release the same day. The announcement did not comment on the issuance of a warrant for 79.9% of AIG's equity, but the AIG 8-K filing of September 18, 2008, reporting the transaction to the Securities and Exchange Commission stated that a warrant for 79.9% of AIG shares had been issued to the Board of Governors of the Federal Reserve.[20][25][41] AIG drew down US$ 28 billion of the credit-liquidity facility on September 17, 2008.[42] On September 22, 2008, AIG was removed from the Dow Jones Industrial Average.[43] An additional $37.8 billion loan was extended in October. As of October 24, AIG had drawn a total of $90.3 billion from the emergency loan, of a total $122.8 billion.[44]

Maurice Greenberg, former CEO of AIG, on September 17, 2008, characterized the bailout as a nationalization of AIG. He also stated that he was bewildered by the situation and was at a loss over how the entire situation got out of control as it did.[45] On September 17, 2008, Federal Reserve Bank chair Ben Bernanke asked Treasury Secretary Henry Paulson join him, to call on members of Congress, to describe the need for a congressionally authorized bailout of the nation's banking system. Weeks later, Congress approved the Emergency Economic Stabilization Act of 2008. Bernanke said to Paulson on September 17:[46]

We can’t keep doing this, both because we at the Fed don’t have the necessary resources and for reasons of democratic legitimacy, it’s important that the Congress come in and take control of the situation.

The constitutionality of the portion of the “Emergency Economic Stabilization Act of 2008”, which appropriated $40 billion in taxpayer money to fund and financially support AIG and resulted in the federal government’s majority ownership interest in AIG, is currently pending ruling in the Federal District Court. The plaintiff (Kevin Murray represented by Thomas More Law Center Trial Counsel Robert Muise and by David Yerushalmi) alleges the defendants (Treasury Secretary Timothy Geithner and the Federal Reserve Board represented by The Department of Justice) use of taxpayer funds to approve, promote, endorse, support, and fund religious activities violates the Establishment Clause of the First Amendment to the Constitution. They further allege two subsidiary companies of AIG practice Sharia-compliant financing which they allege involves obligatory charitable contributions.

[edit] Additional Bailouts of 2008

On October 9, 2008, the company borrowed an additional $37.8 billion via a second secured asset credit facility created by the Federal Reserve Bank of New York (FRBNY).[47] From mid September till early November, AIG's credit-default spreads were steadily rising, implying the company was heading for default.[48] On November 10, 2008, the U.S. Treasury announced it would purchase $40 billion in newly issued AIG senior preferred stock, under the authority of the Emergency Economic Stabilization Act's Troubled Asset Relief Program.[49][50][51] The FRBNY announced that it would modify the September 16th secured credit facility; the Treasury investment would permit a reduction in its size from $85 billion to $60 billion, and that the FRBNY would extend the life of the facility from three to five years, and change the interest rate from 8.5% plus the three-month London interbank offered rate (LIBOR) for the total credit facility, to 3% plus LIBOR for funds drawn down, and 0.75% plus LIBOR for funds not drawn, and that AIG would create two off- balance-sheet Limited Liability Companies (LLC) to hold AIG assets: one will act as an AIG Residential Mortgage-Backed Securities Facility and the second to act as an AIG Collateralized Debt Obligations Facility.[49][51] Federal officials said the $40 billion investment would ultimately permit the government to reduce the total exposure to AIG to $112 billion from $152 billion.[49] On December 15, 2008, the Thomas More Law Center filed suit to challenge the Emergency Economic Stabilization Act of 2008, alleging that it unconstitutionally promotes Islamic law (Sharia) and religion. The lawsuit was filed because AIG provides Takaful Insurance Plans, which, according to the company, avoid investments and transactions that are"un-Islamic".[52][53]

[edit] Counterparty Controversy

AIG was required to post additional collateral with many creditors and counter-parties, touching off controversy when over $100 billion dollars were paid out to major global financial institutions that had previously received TARP money. While this money was legally owed to the banks by AIG (under agreements made via credit default swaps purchased from AIG by the institutions), a number of Congressmen and media members expressed outrage that "taxpayer" money was going to these banks through AIG.[54]

[edit] Post-bailout expenditures

The following week (of September bailout), AIG executives participated in a lavish California retreat which cost $444,000 and featured spa treatments, banquets, and golf outings.[55][56]

It was reported that the trip was a reward for top-performing life-insurance agents planned before the bailout.[57] Less than 24 hours after the news of the party was first reported by the media, it was reported that the Federal Reserve had agreed to give AIG an additional loan of up to $37.8 billion.[58] AP reported on October 17 that AIG executives spent $86,000 on a previously scheduled English hunting trip. News of the lavish spending came just days after AIG received an additional $37.8 billion loan from the Federal Reserve, on top of a previous $85 billion emergency loan granted the month before. Regarding the hunting trip, the company responded, "We regret that this event was not canceled."[59] An October 30, 2008 article from CNBC reported that AIG had already drawn upon $90 billion of the $123 billion allocated for loans.[60] On November 10, 2008, just a few days before renegotiating another bailout with the US Government for $40 billion, ABC News reported that AIG spent $343,000 on a trip to a lavish resort in Phoenix, Arizona. [61]

[edit] Settlement of credit default swaps

On October 22, 2008, those creditors of Lehman Brothers who bought credit default swaps to hedge them against Lehman bankruptcy settled those accounts. The net payments were $5.2 billion[62] even though initial estimates of the amount of the settlement were between $100 billion and $400 billion.[63]

On March 15, 2009, under mounting pressure from Congress and after consultation with the Federal Reserve, AIG disclosed a list of major recipients of collateral postings and payments under credit default swaps, guaranteed investment plans, and securities lending agreements.[64] During December 2008, AIG paid $18.7 billion to various financial institutions, including Goldman Sachs and Société Générale to retire obligations related to credit default swaps (CDS). As much as $53.5 billion related to swap payouts are part of the bailout.[65]

[edit] Sales of assets

AIG since September 2008 has marketed its assets to pay off its government loans. A global decline in the valuation of insurance businesses, and the weakening financial condition of potential bidders, has challenged its efforts. If the U.S. government decides to continue to protect the company from falling into bankruptcy, it may have to take the assets itself in exchange for the loans, or offer further direct financial support.[66]

[edit] Record losses

The lobby of AIG's headquarters in the American International Building.

On March 2, 2009, AIG reported a fourth quarter loss of $61.7bn (£43bn) for the final three months of 2008. This was the largest quarterly loss in corporate history at that time.[67] The announcement of the loss had an impact on morning trading in Europe and Asia, with the FTSE100, DAX and Nikkei all suffering sharp falls. In the US the Dow Jones Industrial Average fell to below 7000 points, a twelve-year low.[68][69] The news of the loss came the day after the U.S. Treasury Department had confirmed that AIG was to get an additional $30 billion in aid, on top of the $150 billion it has already received.[70] The Treasury Department suggested that the potential losses to the US and global economy would be 'extremely high' if it were to collapse[71] and has suggested that if in future there is no improvement, it will invest more money into the company, as it is unwilling to allow it to fail.[72] The firm's position as not just a domestic insurer, but also one for small businesses and many listed firms, has prompted US officials to suggest its demise could be 'disastrous' and the Federal Reserve said that AIG posed a 'system risk' to the global economy.[73] The fourth quarter result meant the company made a $99.29 billion loss for the whole of 2008,[74] with five consecutive quarters of losses costing the company well over $100 billion.[75] In a testimony before the Senate Budget Committee on March 3, 2009, the Federal Reserve Chairman Ben Bernanke stated that "AIG exploited a huge gap in the regulatory system,” ... and "to nobody’s surprise, made irresponsible bets and took huge losses".[76]

[edit] 2009 employee bonus payments

Main article: AIG bonus payments controversy

In March 2009, AIG announced that they were paying out $165 million in executive bonuses. Total bonuses for the financial unit could reach $450 million and bonuses for the entire company could reach $1.2 billion.[77] President Barack Obama, who voted for the AIG bailout as a Senator[78] responded to the planned payments by saying "[I]t’s hard to understand how derivative traders at A.I.G. warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?" and "In the last six months, A.I.G. has received substantial sums from the U.S. Treasury. I’ve asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole."[79]

A protester outside of AIG's headquarters in the wake of the bonus controversy is interviewed by news media.

Politicians on both sides of the Congressional aisle reacted with outrage to the planned bailouts. Senator Chuck Grassley (R-Iowa) said "I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the American people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide."[80] Senator Chuck Schumer (D-New York) accused AIG of "Alice in Wonderland business practices" and said "It boggles the mind." He has threatened to tax the bonuses at up to 100%.[81] Senator Richard Shelby (R-Alabama) said "These people brought this on themselves. Now you're rewarding failure. A lot of these people should be fired, not awarded bonuses. This is horrible. It's outrageous."[82] Senator Mitch McConnell (R-Kentucky) echoed his comments, saying "This is an outrage."[83] Senator Jon Tester (D-Montana) said "This is ridiculous." and AIG executives "need to understand that the only reason they even have a job is because of the taxpayers."[84] Senator Dick Durbin (D-Illinois) said "I've had it." and "The fact that they continue to do it while we pour in billions of dollars is undefensible."[85]

Search Wikinews Wikinews has related news: US president Obama, Congress call for blocking of executive bonuses at AIG insurance company

Representative Barney Frank (D-Massachusetts), Chairman of the House Financial Services Committee, said paying these bonuses would be "rewarding incompetence"[86]

and "These people may have a right to their bonuses. They don't have a right to their jobs forever."[87] Representative Mark Kirk (R-Illinois) said "AIG should not be on welfare from Uncle Sam, and yet paying bonuses and transferring a considerable amount of taxpayer funds to entities overseas."[88] Federal Reserve Chairman Ben Bernanke said "It makes me angry. I slammed the phone more than a few times on discussing AIG."[89] Lawrence Summers, Director of the National Economic Council, said "The easy thing would be to just say, you know, ‘Off with their heads,’ and violate the contracts."[90] Austan Goolsbee, of the Council of Economic Advisers said "I don't know why they would follow a policy that's really not sensible, is obviously going to ignite the ire of millions of people." and "You worry about that backlash."[91]

Political commentators and journalists expressed an equally bipartisan outrage.[92][93][94][95][96][97][98][99][100][101][102]

On March 24, 2009, The New York Times printed the resignation letter of Jake DeSantis, executive vice president of AIG’s financial products unit, to Edward M. Liddy, the chief executive of AIG. DeSantis stated he had nothing to do with the credit default swaps, he lost much of his life savings in the form of deferred compensation invested in the capital of AIG Financial Products; he had agreed to work for an annual salary of $1 out of a sense of duty, that he was assured many times the bonuses would be paid in March 2009, and that he believed he and others were let down by Liddy's lack of support. He also stated he was going to donate his bonus to those suffering from the global economic downturn.[103]

It was reported that Senator Christopher Dodd (D-Con) (who first denied, then admitted to amending the legislation to allow the AIG bonuses), received $160,000 from employees of AIG.[104][105][106][107] A memo issued in 2006 by Joseph Cassano, AIG Financial Products chief executive, urged AIG employees to donate to Dodd, saying that as "next in line to become chairman of the Senate Banking, Housing, and Urban Affairs Committe... Senator Dodd will now have the opportunity to set the committee's agenda on issues critical to the financial services industry."[108]

[edit] Business

In the United States, AIG is the largest underwriter of commercial and industrial insurance, and AIG acquired American General Life Insurance in August 2001.[109]

[edit] Auto insurance

AIG sold auto insurance policies through its subsidiary unit, AIG Direct (aka aigdirect.com). The policies they offered included insurance for private automobiles, motorcycles, recreational vehicles and commercial vehicles.

AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749 million.[110] With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance.[111][112] In April 2009 it was announced that AIG was selling the 21st Century Insurance subsidiary to Farmers Insurance Group for $1.9 billion.[113]

[edit] Holdings

Further information: Holdings of American International Group

[edit] Litigation

 This section needs additional citations for verification.
Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (September 2008)

In November 2004, AIG reached US$126 million settlement with the U.S. Securities and Exchange Commission and the Justice Department partly resolving a number of regulatory matters, but the company still must cooperate with investigators continuing to probe the sale of a non-traditional insurance product[114].

On June 11, 2008, three stockholders, collectively owning 4% of the outstanding stock of AIG, delivered a letter to the Board of Directors of AIG seeking to oust CEO Martin Sullivan and make certain other management and Board of Directors changes. This letter was the latest volley in what the Wall Street Journal deemed a "public spat" between the Company's Board and management, on the one hand, and its key stockholders, and former CEO Maurice "Hank" Greenberg on the other hand.[115]

[edit] Accounting fraud claims

On October 14, 2004 the New York State Office of Attorney General Eliot Spitzer announced that it had commenced a civil action against Marsh & McLennan Companies for steering clients to preferred insurers with whom the company maintained lucrative payoff agreements, and for soliciting rigged bids for insurance contracts from the insurers. The Attorney General announced in a release that two AIG executives pleaded guilty to criminal charges in connection with this illegal course of conduct. In early May 2005, AIG restated its financial position and issued a reduction in book value of USD $2.7 billion, a 3.3 percent reduction in net worth.

On February 9, 2006, AIG and the New York State Attorney General's office agreed to a settlement in which AIG would pay a fine of $1.6 billion.[116]

There is an ongoing fraud investigation that has been launched by the FBI after the collapse in stock price.[117]

[edit] Corporate governance

[edit] Board of directors

[edit] See also

Companies portal

[edit] Notes

  1. ^ a b c d e f "Form 10-K". http://idea.sec.gov/Archives/edgar/data/5272/000095012309003734/y74794e10vk.htm. Retrieved on 2009-03-06. 
  2. ^ http://www.bloomberg.com/apps/news?pid=20601103&sid=aaog3i4yUopo&refer=us
  3. ^ http://americaninternationalgroupsucks.com
  4. ^ http://aigsucks.net/
  5. ^ http://www.nbcconnecticut.com/news/local/AIG-Threats-We-will-get-your-children.html
  6. ^ http://www.marketwatch.com/story/aig-chief-staff-get-death-threats
  7. ^ http://cimarketingforms.aig.com/content/09APR20KrisMoor
  8. ^ http://www.insurancejournal.com/news/national/2009/04/21/99817.htm
  9. ^ http://www.huffingtonpost.com/2009/03/23/aiu-holdings-aig-creates_n_178111.html
  10. ^ http://ir.aigcorporate.com/phoenix.zhtml?c=76115&p=irol-newsArticle&ID=1261314&highlight
  11. ^ http://www.badfaithinsurance.org/indexdetaillist.html
  12. ^ Thompson, Clifford; Block, Maxine; Moritz, Charles; Rothe, Anna Herthe; Candee, Marjorie Dent (1941). Current Biography Yearbook. Current Biography (60th ed.). H. W. Wilson Company. p. 247. http://books.google.com/books?id=P4oYAAAAIAAJ&q=%22AIG+abandoned+China+completely+in+1949%22&pgis=1. Retrieved on 2009-03-18. 
  13. ^ "Foreign Office Files for China, 1949-1976". Part 1: Complete Files for 1949: Publisher's Note. Adam Matthew Publications. http://www.adam-matthew-publications.co.uk/digital_guides/fo_china_part_1/Publishers-Note.aspx. Retrieved on 2009-03-18. 
  14. ^ "AIG: What does this US giant do?". BBC News. 17 September 2008. http://news.bbc.co.uk/2/hi/business/7621574.stm. Retrieved on 2009-03-18. 
  15. ^ "American International Group Inc (New York Stock Exchange)". Company profile (New York City: Thomson Reuters). http://www.reuters.com/finance/stocks/companyProfile?symbol=AIG.N. Retrieved on 2009-03-18. 
  16. ^ Hoover's Handbook of American Business (9th ed.). Austin, Texas: Hoover's Business Press. 1999. p. 134. ISBN 9781573110457. http://books.google.com/books?id=0okYAAAAIAAJ&q=%22AIG+went+public+in+1969%22&pgis=1. Retrieved on 2009-03-18. 
  17. ^ MSNBC
  18. ^ Reuters
  19. ^ Yahoo
  20. ^ a b c d Andrews, Edmund L.; Michael J. de la Merced and Mary Williams Walsh (2008-09-16). "Fed’s $85 Billion Loan Rescues Insurer". New York times. http://www.nytimes.com/2008/09/17/business/17insure.html?hp. Retrieved on 2008-09-17. 
  21. ^ "Former AIG CEO Willumstad foregoes some stock awards". New York City: Thomson Reuters. 30 December 2008. http://www.reuters.com/article/ousivMolt/idUSTRE4BT5CL20081230. Retrieved on 2009-03-18. 
  22. ^ Gretchen, Morgenson (2008-09-27). "Behind Insurer’s Crisis, Blind Eye to a Web of Risk". NY Times. http://www.nytimes.com/2008/09/28/business/28melt.html. Retrieved on 2008-09-17. 
  23. ^ Kaiser, Emily (2008-09-17). "After AIG rescue, Fed may find more at its door". Reuters. http://www.reuters.com/article/idUKN1644235820080917. Retrieved on 2008-09-17. 
  24. ^ a b c United States Federal Reserve Board of Governors, Press release: Federal Reserve Board, met with full support of the Treasury Department, authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG), September 16, 2008
  25. ^ a b "AIG Statement on Announcement by Federal Reserve Board of $85 Billion Secured Revolving Credit Facility: Addresses Liquidity Issues and Policyholder Concerns". American International Group, Inc.. 2008-09-16. http://ir.aigcorporate.com/phoenix.zhtml?c=76115&p=irol-newsArticle&ID=1197918&highlight=. Retrieved on 2008-09-16. 
  26. ^ Clobbered: Dow Plummets 449 on Credit Fears Fox Business News
  27. ^ "Adding to the Government's Books". New York Times. 2008-09-18. http://www.nytimes.com/imagepages/2008/09/18/business/20080918_FED_GRAPHIC.html. Retrieved on 2008-09-18.  (Graphic comparing size of government credit facilities or asset guarantees)
  28. ^ a b c Gretchen Morgensen; Mary Williams Walsh (2008-09-14). "Rush Is On to Prevent A.I.G. From Failing". The New York Times. http://www.nytimes.com/2008/09/15/business/15aig.html?hp. Retrieved on 2008-09-14. 
  29. ^ Andrew Ross Sorkin (2008-09-14). "AIG to Plan Restructuring and Asset Sales". The New York Times. http://dealbook.blogs.nytimes.com/2008/09/14/aig-to-plan-massive-restructuring/. Retrieved on 2008-09-14. 
  30. ^ Mark Pittman (2008-09-29). ""Goldman, Merrill Collect Billions After Fed's AIG Bailout Loans"". Bloomberg News. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTzTYtlNHSG8. Retrieved on 2008-10-12. 
  31. ^ Culprits of the Collapse - Joe Cassano
  32. ^ "Fed Seeks At Least $70 Billion to Help A.I.G.". The New York Times DealBook. 2008-09-15. http://dealbook.blogs.nytimes.com/2008/09/15/fed-hires-morgan-stanley-to-evaluate-aig-options/. Retrieved on 2008-09-15. 
  33. ^ "Goldman, JPMorgan Try to Arrange $75 Billion AIG Loan". Bloomberg.com. 2008-09-15. http://www.bloomberg.com/apps/news?pid=20601087&sid=a8IBBQJiLJag. Retrieved on 2008-09-15. 
  34. ^ Andrew Ross Sorkin (2008-09-16). "A.I.G. Plummets Again as Options Fade". The New York Times. http://dealbook.blogs.nytimes.com/2008/09/16/aig-plummets-again-as-options-fade/. Retrieved on 2008-09-16. 
  35. ^ Michael Grynbaum (2008-09-16). "Wall Street Holds Steady; Fed to Meet". The New York Times. http://www.nytimes.com/2008/09/17/business/worldbusiness/17markets.html?_r=1&hp&oref=slogin. Retrieved on 2009-03-10. 
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  38. ^ Many blame the financial problems on the legal problems AIG began having as a result of a number of government investigations alleging fraud and other inproprieties which were approved by the office of its then chairman, Maurice Greenberg. These problems placed such a focus on AIG's activities that it created a level of required transparency and fear of getting caught, which many believe forced the company to be less active and willing to cheat its way out of these problems. A manner of doing business it learned with its core activity of denying legitimate insurance claims and then pressuring its insureds, their witnesses and anyone else coming to their support while trying to intimidate judges and insurance commissioners. So who began all this? In May 2001 an insurance claimant and shareholder, Cesar Balbin stepped into the annual shareholders meetings. For the first time ever in the company's history, AIG was publicly accused of criminal and civil racketeering activities including: extortion, blackmale, claims fraud, theft of company equity: it took with it the chairman, billions of dollars and led to a greater transparency and fear that possibly contributed to inaction by many at AIG to participate in its typically less that legal and proper activities required to keep the company afloat."Letter from Maurice Greenberg to AIG Ceo and Board of Directors" (PDF). WikiLeaks. 2008-09-16. https://secure.wikileaks.org/wiki/Image:AIG09162008.pdf. Retrieved on 2008-09-17. 
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