AIG - Arrogance Incompetence and Greed are one of the many...

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“Arrogance, Incompetence, and Greed”, are one of the many words that were used to describe the American International Group, popularly known as AIG, after news of its total collapse and subsequent tales of mismanagement came to light in late 2008. From that time on, the state of affairs at AIG always seemed to be deteriorating. The breakdown of AIG has been attributed to many factors. But an underlying theme that keeps surfacing is the greed and negligent risk taking that many executives and upper management took in return for generous compensation. The short sightedness and greed can be related to the fact that many AIG personalities failed to live by their duties and lacked business ethics. Before we go on, let us glance briefly on the background of AIG. AIG before 2008 AIG is a holding company which, through its subsidiaries, engaged in a range of insurance and insurance-related activities in the United States and abroad. AIG's primary activities include both General Insurance and Life Insurance & Retirement Services operations. Other significant activities include Financial Services and Asset Management. AIG at one time was the 18 th largest company in the world . It became well known throughout the world and its employees were proud to be associated with such a large and successful company. It was also listed on the Dow Jones Industrial Average for four years (2004-2008). The Collapse and Bailouts By 2007, AIG had assets of approximately $1 trillion, $110 billion in annual revenues, 74 million customers and 116,000 employees in 130 countries and jurisdictions. But a year later, AIG announced it was facing serious liquidity crisis accredited to the emerging issue that it had
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This note was uploaded on 11/08/2011 for the course ECON 101 taught by Professor Robert during the Fall '08 term at Montgomery College.

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AIG - Arrogance Incompetence and Greed are one of the many...

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