outline by sally

MANA – group 3

Subject – AIG

American International Group

                                        Or Ain’t I Greedy

Introduction

1. Economic crisis of 2008 to 2009 in United State of America.

; Global inflation, increased unemployment, High oil and food prices, declining dollar value, horrible housing market, subprime mortgage crisis.

2. About American International Group (AIG).

-   Where the AIG was originally formed?

; 1919, Shanghai, China.

-   Which were the countries which are involved?

; 101 countries.

-   What does AIG has to offer?

·       Auto insurance

·       Travel insurance

·       Healthy insurance

Body

1. Reason of AIG faced bailouts.

-   credit default swap (CDS) business.

; a swap contract in which the protection buyer of the CDS makes a series of payments to the protection seller and, in exchange, receives a payoff if a credit instrument (typically a bond or loan) experiences a credit event.

-   The financial Crises.

; September 16, 2008.

2. Lose of September 2007-2008.

-   About bailout.

·       Definition

; an act of giving capital to an entity that is in danger of failing, in an attempt to save it from bankruptcy, insolvency, or total liquidation and ruin

·       How much came out from the U.S. government?

;

·        How many companies were accepted?

-   Federal government Bailout.

-   US Treasury Bailout.

·        The biggest bailout the government ever gave. 

    

3. After accept the bailout.

-   Bonus to the employment of 2009.

·        Who?

; Financial products units.

·        How much?

; $165 million.

·        Why?

-   Social issue of retention bonus.

·       Unemployment.

-   A billion dollar corruption

·       Joseph Cassano

; Led AIG's Financial Products division from 2002 to 2008. Cassano's unit underwrote insurance on bonds CDS.

-   Sale of assets to pay back the government.

·        President Obama’s administration.

Conclusion

1. The result of the bailout.

2. Future Plans of AIG.

·        Subsidiary market; chartis.

3. Question and answer.