/
Questions/
Assignment/
American International Group, better known as AIG, was a trillion-dollar insurance giant and before 2008 was one of the 20 largest companies in the world: Institutions in the global financial market, Assignment, UOS,UK
Looking For Plagiarism Free Answers For Your UK College/ University Assignments.
BUY NOWAmerican International Group, better known as AIG, was a trillion-dollar insurance giant and before 2008 was one of the 20 largest companies in the world: Institutions in the global financial market, Assignment, UOS,UK
University | University of Southampton (UOS) |
---|---|
Subject | Institutions in the global financial market |
“American International Group, better known as AIG, was a trillion-dollar insurance giant and before 2008 was one of the 20 largest companies in the world. A small separate unit, AIG’s Financial Products division, went into the credit default swap business in a big way, insuring over $400 billion of securities, of which $57 billion was debt securities backed by subprime mortgages. Lehman Brothers’ troubles and eventual bankruptcy on September 15, 2008,
Revealed that subprime securities were worth much less than they were being valued on the books, and investors came to the realization that AIG’s losses, which had already been substantial in the first half of the year, could bankrupt the company. Lenders to AIG then pulled back with a vengeance, and AIG could not raise enough capital to stay afloat. On September 16 the Federal Reserve and the U.S.
Treasury decided to rescue AIG because its failure was deemed potentially catastrophic for the financial system. Not only were banks and mutual funds large holders of AIG’s debt, but the bankruptcy of AIG would have rendered all the credit default swaps it had sold worthless, thereby imposing huge losses on financial institutions which had bought them.
The Federal Reserve set up an $85 billion credit facility (later raised to $182 billion) to provide liquidity to AIG. The rescue did not come cheap, however. AIG was charged a very high-interest rate on the loans from the Fed, and the government was given the right to an 80% stake in the company if it survived.”
Do You Need Assignment of This Question
Get help by expert
Elevate your academic journey at the University of Southampton (UOS) with our specialized services, including UK assignment help and Finance Assignment Help UK. Singaporean students, you can rely on our expert assistance to excel in your coursework. Explore topics like “Institutions in the global financial market,” with a focus on companies like American International Group (AIG). Let us guide you through assignments to ensure your academic success. Don’t hesitate to pay for our expertise to enhance your learning experience.
Recent solved questions
- In the final section of your report, you need to develop a change strategy that will achieve the aims and objectives of the organization: Managing change Assignment, OC, UK
- The managing director knows that change is unlikely to be successful unless stakeholders understand the reasons: Managing change Assignment, OU, UK
- The managing director needs an understanding of the models or frameworks for strategic change in organizations: Managing change Assignment, OU, UK
- Define a type of sensor (and if applicable, state the transducer used within the sensor): HNC in Engineering Assignment, UCS, Ireland
- Bloomberg can only be accessed on Campus at the Bloomberg room, while we are aware there are capacity constraints: Financial investments Assignment, NU, UK
- The assessment brief contains a series of tasks that are clearly referenced to the relevant assessment criteria and indicative content: CMI Unit 524 Other, CU, UK
- CMI704 Critique the factors which drive the development of organizational strategy: Developing Organizational Strategy Assignment, QUB, UK
- ILM 8581-701 Establish and build effective coaching or mentoring relationships with clients at a senior/strategic level: Undertaking Coaching or Mentoring at a Senior and Strategic Level course Assignment, UOS, UK
- H416 write an information guide for new staff which will give them an overview of housing management and advice services: cih level 4 Assignment, CMU, UK
- Understand approaches to developing, managing and leading teams: CMI Diploma Assignment, EC, UK