American International Group

AIG holding familiarity deals with insurance as well as other activities that are related to insurance in America with its operations by several subsidiaries. The primary activities of the keep company incorporate the general insurance as well as life insurances and the operation services dealing with retirement. The company in any case undertakes financial services as well as financial management. The operating segments of the company allows for the provision of insurance, the provision of services as well as products to profession bodies and the individuals alike in over 130 countries together with their jurisdictions.The company was involved in a sale of about a half of its stakes in the city airport of London. The company also made a sale of the security portfolios that backs the residential mortgage to Maiden Lane (David & John 7). AIG happened to be on of the reputable insurance organizations in America just prior to the sudden fall in of the company around the ninth mon th of 2008. The actual cause of the collapse was a heavy weight involving bad debts as a result of the insurance that the company made against securities backed by mortgages.Federal Reserve initially took the possible action of bailing the company with an infusion involving over eighty five gazillion US dollars. Despite of this initiative, the trend of the losses was on the increase leading to the announcement by the treasury of a fresh rescue package in November of the same year. This package was a result of the escalating cost to the extent of US $ 150 billion (The NY generation par. 1). On the third month of 2009, the federal states government made an agreement for the provision of an extra US $ 30 billion to the company with to a greater extent soft terms.The extent of the loan was on the upward side and the extent of the loss of the company was in the tune of US $ 61. 7 billion (The NY Times par. 2). This was a mega loss on a quarterly basis that was recorded in history. In its history, the company received an intervention from the American government for quaternity times for the purpose of the aversion of its bankrupsy. The interventions have resulted to the escalation of the government shares in the company to the extent of 80%. The interventions occurred in the form loans amounting to over US $ 60 billion, prefer shares acquisition amounting to US $ 40 billion.An additional US $ 50 billion was invested in the company with the objectives of soaking up of the toxic assets of the company (The NY Times par. 2). This company was faced by outrage of significant magnitude on the realization of the fact that bonuses amounting to over US$ 165 million had been paid in the new-fangled past to the members involved in the unit of trade that was instrumental to the collapse of the company. This was an incident that took place in the 15th day of March. This prompted President Obama to direct the treasury to assess the possibility of the blockage of the payment s as well as its recovery (The NY Times par.4). This was followed by a hearing composed of a highly mad congress led by the chief executive Edward Liddy. The executive requested all of the employees whose annual income is above US $ 100 000 who had participated in the payout of the bonus to reward half of it. This had the reflection of the disgust the public as well as the political arena were exposed to due to the action of rewarding the individuals who took part in the collapse of the company and distressing the economy. Majority of them expressed their desire to refund the full amount of what they had been awarded (The NY Times par.6). Although this company has its roots in the United States, its telephone circuit is actually Asia. The founder of the company was a veteran of the First World War named Cornelius V. Stars. The focus of the company in 1960 was the increments of the share of the company of the patronage of life insurance as well as writing unusual coverage. These include examples of kidnapping insurance as well as protection suits by the officers and the directors of companies. The problems of this company have their accommodation in the financial units that are based in London.The group offering financial services ties the security and value of the homes of the vendor. The decline in the value of the homes as well as the value of the mortgages was the contributing factor of the problems of the company. The distress of the company was preceded by the unusual period associated with turmoil (The NY Times par. 12). The betimes part of 2005 was characterized by questions regarding the companys financial transaction that brought about the improvement of the earnings of the company.The complex structure of the company as well as its aggressive approach is a reflection of the companys determination for the creation of an empire of a global standard whose operations were to complement the business (The NY Times par. 12). Works Cited The NY Times. A merican International Group 26th March 2009 March 19 2009 David, Frost. John, Greenya. American International Group. NY U. S. News and World Report, 1988.