The case details the history of its organizational structure, AIG, and involvement in the market for credit default swaps as well as the financial catastrophe. Edward Liddy has been appointed chairman of AIG and by Treasury Secretary Henry Paulson as the CEO during the government's bailout of the insurance giant. He is preparing to deal with the U.S. House of Representatives' Financial Services Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises to provide testimony related to AIG's payment of $165 million in bonuses to numerous of its supervisors at the same time the authorities had been injecting billions of dollars into the business to help keep it afloat. Students are asked to reflect on the bonus payments, how to be sure the firm did not confront similar dilemmas again in the foreseeable future, and what factors in the organization might have contributed to the problems AIG faced in the fiscal catastrophe.
PUBLICATION DATE: June 07, 2011 PRODUCT #: UV5235-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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