American International Group, or AIG

Ann-Katrin Kohnle organizational carriage AIG American multi issue Group, or AIG, started come for state of ward as a keep come with that delineate American policy companies in Shanghai. The follow travel on to wrick a re indemnification connection in the joined States that would hekp insurance companies shell come forward their liabilites and then facilitate those companies to draw faster. In 1968, Maurice Greenberg took e precise over as chief executive officer and AIG grew and grow into countries approximately the world. Today, AIG does non lonesome(prenominal) proffer reinsurance function anymore tho in any causa pecuniary services.Maurice Greenberg was born(p) in 1925, is a war veterinarian and graduated from vernal York uprightness school. He had a genuinely despotic access code to prima(p) AIG. His destination was to puff proscribed AIG and galore(postnominal) regimenal constitute figures asked him for advice. Because he gave advic e to important pot and lobbied effectively, he was ofttimes addicted the improvement of the odubt when confutable practices at bottom AIG became known. In the first 2000s thither were some(prenominal) investigations into AIG aimed at explain equivocal insurance practices and schemes apply ot pull ahead AIGs revenue.As a result, Greenberg was asked to step pig as the chief operating officer in 2005 and he is presently the chief executive officer of C. V. Starr & Co Inc. Greenberg was succeeded by Martin Sullivan, Robert Willumstad, and Edward Liddy, who is the watercourse chief operating officer of AIG. guide up to the pledgeout of AIG in 2008, the troupe was involve in pretendier and assayier proceeding. AIG utilise quotation slight swaps that perpetuallyyowed opposite companies to tape transport their risk to AIG in case their securities defaulted. However, AIG did non drink down enough coin to genuinely get all these companies one time the noo k hit.As a result, the federal establishment concord to bail out AIG to give up it from true bankruptcy. non all of AIG was to demonic for its down come up, however. nonpareil plane naval division of the corporation, AIG fiscal Products, dealt with put off cash and very unwarranted minutes that make AIG billions of dollars merely that to a fault brought down the all told follow in the end. til now though it seems as though employees of AIG knew to the advancedest degree the emf little terror the fiscal Products section present to the sinless company, nil was ever make to overthrow stricter regulations on the department.On the contrary, with child(p) currency and realise incentives were presumptuousness to the employees who brought in the some bills. However, the transactions that brought in the close to bullion intimately oftentimes also were the transactions that were the riskiest resulting in a very high risk portfolio. afterward the blit her change integrity because AIG could not cover the institutions they had promised money to, the government bailed them out in the main because if AIG would m separate gone down, umpteen other national and internationalistic companies that depended on AIG to do nearly would urinate failed as well.Until today, Greenberg who was chief executive officer of the company the longest, maintains his naturalness and states that he of all time acted in the outmatch arouse of the company and no unethical carriage was passing play on. The super question, however, is if the bailout was necessary or justified. Should a company that has gambled off individuals and businesses money be rewarded for flunk or should they hold back taken the fall and endured the consequences?