Several major businesses floundered in the wake of the global economic recession. Unable to recover in the early days of the economic downturn, many of these companies were allowed to fail. In the U.S., some of these companies received federal aid in the form of massive cash injections. The American International Group, an American insurance corporation, was one such company. AIG, however, mishandled the funds in one way or another, leading the government to seize the company. Now, The U.S. Treasury Department is selling shares of the company in the…
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An insider’s look at the AIG collapse
Unpublished diplomatic cables that were acquired by WikiLeaks reported that during the collapse of the American International Group Inc back in 2008, propriety information about the company were released by the Chinese Insurance Regulatory Commission (CIRC) to its rival companies, as believed by some U.S. officials. The reports say that CIRC intervened during the company’s collapse in September 2008 by forcing the local operations of AIG to open their books daily. CIRC then released the information that they obtained through this move to the competitors so that they will buy…
Read MoreAIG takes a hit in the fourth quarter
The American International Group is reporting, in the fourth quarter, the company will have to take a charge back of over $4 billion in order to secure reserves on what they call long-tail insurance policies. These policies were sold by the company’s Chartis branch which offers property and casualty coverage. The boost is due, in part, to the rising cost of claims and risk management. These long-tail claims generally can take years to resolve and accrue heavy price tags during that period. There are concerns that AIG has been favoring…
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