The Causes and Effects of the AIG Bailout PDF Download

Author: United States. Congress. House. Committee on Oversight and Government Reform
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 172

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Author: William K. Sjostrom
Publisher:
ISBN:
Category :
Languages : en
Pages : 34

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In the early spring of 2009, I wrote an article on the federal government's bailout of American International Group, Inc. (AIG) entitled The AIG Bailout (see "http://ssrn.com/abstract=1346552" http://ssrn.com/abstract=1346552). Many events related to the bailout transpired after that article was published. Hence, this Article serves as an afterword to it, detailing some of these post-article events. In that regard, the Article picks up where Part IV of The AIG Bailout left off. It describes the further restructuring of government assistance through the recapitalization of AIG, details the governments exit as AIG's controlling shareholder, and considers U.S Department of Treasury's claim of a $22.7 billion “overall positive return” on the AIG Bailout. The Article then delves into the Maiden Lane III transactions, perhaps the most controversial part of the bailout, pursuant to which Société Générale, Goldman Sachs, Merrill Lynch and other AIGFP counterparties were bought out at essentially 100 cents on the dollar. Finally, the Article examines the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the principal federal regulatory response to the financial crisis, most relevant to what happened at AIG. Specifically, it considers how these regulations would have applied to AIG had they been in place prior to its collapse.

Author: William K. Sjostrom
Publisher:
ISBN:
Category :
Languages : en
Pages : 49

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On February 28, 2008, American International Group, Inc. (AIG), the largest insurance company in the United States, announced 2007 earnings of $6.20 billion or $2.39 per share. Its stock closed that day at $50.15 per share. Less than seven months later, however, AIG was on the verge of bankruptcy and had to be rescued by the United States government through an $85 billion loan. Government aid has since grown to $182.5 billion, and AIG's stock recently traded at less than $1.00 per share.The Article explains why AIG, a company with $1 trillion in assets and $95.8 billion in shareholders' equity, suddenly collapsed. It then details the terms of the government bailout, explores why it was undertaken, and questions its necessity. Finally, the Article describes the regulatory gap exploited by AIG and offers some thoughts on regulatory reform.The Afterword for this paper is available at the following URL: lt;a href=quot;http://ssrn.com/abstract=2588871quot;gt;http://ssrn.com/abstract=2588871lt;/agt.

Author: United States. Congress. House. Committee on Oversight and Government Reform
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Neil Barofsky
Publisher: Simon and Schuster
ISBN: 1451684959
Category : Biography & Autobiography
Languages : en
Pages : 295

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Includes a new foreword to the paperback edition.

Author: United States Congress
Publisher: Createspace Independent Publishing Platform
ISBN: 9781978279544
Category :
Languages : en
Pages : 172

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The causes and effects of the AIG bailout: hearing before the Committee on Oversight and Government Reform, House of Representatives, One Hundred Tenth Congress, second session, October 7, 2008.

Author: United States House of Representatives
Publisher:
ISBN: 9781700906977
Category :
Languages : en
Pages : 172

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The causes and effects of the AIG bailout: hearing before the Committee on Oversight and Government Reform, House of Representatives, One Hundred Tenth Congress, second session, October 7, 2008.

Author: Malcolm S. Salter
Publisher:
ISBN:
Category :
Languages : en
Pages : 66

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Cronyism may well be an intensifying problem in contemporary American capitalism, but an incorrect identification and labeling of crony capitalism subverts meaningful reform. Five years after considerable financial assistance was provided to the American International Group by the New York Federal Reserve Bank and the U.S. Treasury, the AIG bailout story remains highly controversial as a putative case of capitalism gone bad -- crony capitalism at its worst. This paper reviews the record surrounding the AIG bankruptcy and argues that the bailout decision and the subsequent structure of the bailout tell a much different story than the one characterized as “crony capitalism.” Based on a close reading of this record, the story I tell is that the lingering controversies over the bailout are not a result of the corrupt behavior of Federal Reserve and Treasury officials. Rather, they are the result of impromptu and highly improvised risk management by government officials who had no clear regulatory authority over failing investment banks and insurance companies -- like Bear Stearns, Lehman Brothers, and AIG -- and who were conditioned by their professional training and current responsibilities to focus on the worst-case scenarios following the collapse of large financial institutions holding fast-depreciating real estate assets. Operating under severe time constraints and existential anxiety, mistakes and missteps were made by the New York Fed in its unfamiliar role as the chief restructuring officer of AIG. But this is far different story than calculated corruption benefiting large domestic and foreign banks vulnerable to an AIG collapse. This essay is a cautionary tale about exaggerated (and false) claims of institutional corruption in the public and private sectors. We are currently witnessing a sufficient number of cases of both unlawful and lawful-but-corrupt behavior to motivate a debate about meaningful reforms. Inaccurate characterizations of institutional and individual behavior can only serve to contaminate this important conversation.

Author: Roddy Boyd
Publisher: John Wiley & Sons
ISBN: 0470889802
Category : Business & Economics
Languages : en
Pages : 372

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Long-listed for the FT & Goldman Sachs Business Book of the Year Award 2011 The true story of how risk destroys, as told through the ongoing saga of AIG From the collapse of Bear Stearns and Lehman Brothers, the subject of the financial crisis has been well covered. However, the story central to the crisis-that of AIG-has until now remained largely untold. Fatal Risk: A Cautionary Tale of AIG's Corporate Suicide tells the inside story of what really went on inside AIG that caused it to choke on risk and nearly brining down the entire economic system. The book Reveals inside information available nowhere else, including the personal notes and records of key players such as the former Chairman of AIG, Hank Greenberg Takes readers behind the scenes at the U.S. Treasury and the Federal Reserve Bank of New York Details how an understanding of risk built AIG, but a disdain for government regulators led to a run-in with New York State Attorney General Eliot Spitzer Fatal Risk is the comprehensive and compelling true story of the company at the center of the financial storm and how it nearly caused the entire economic system to collapse.

Author: United States. Congress. House. Committee on Oversight and Government Reform
Publisher:
ISBN:
Category : Financial services industry
Languages : en
Pages : 644

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