Introduction to the Sciences

Tommy Nichols

MGMT115-1302B-03

Phase3 DB

Professor Berry

June 9, 2013

The company that I chose was the insurance giant AIG because of the bailout scandal in which the government gave AIG $182 billion dollars which was the leading company bailout in history (Greider, 2010). AIG’s downfall and subsequent salvage complicated nearly all the serious components, including misconception and fraud.

These pecuniary transactions were dreadfully questionable, but the account emphases on something ordinary individuals can understand—ethical misperception from top to bottom places, and the disappointment of leading organizations to fulfill their commitments to the public (Greider, 2010).

Saving AIG successfully meant saving Goldman Sachs, Morgan Stanley, Bank of America and Merrill Lynch as well as a lots of European banks from enormous losses. Those financial organizations played the derivatives game with AIG, the murky repetition of placing financial stakes on some future dealings. AIG lost its wagers, which led to its downfall. Also other risk-takers the counterparties in AIG’s derivative deals were made whole on their stakes and paid off one hundred cents on the dollar. Taxpayers got stuck with the bill (Greider, 2010)

While AIG’s bailout was carried out in the declining days of George W. Bush’s presidency, the popular sense of unfairness has deeply blemished Barack Obama, since he too adopted a sympathetic approach toward culpable financial interests. Obama came to office intent on repairing public trust in government. His clemency of the mega-banks led to the opposite result (Greider, 2010).

The timeline of AIG bailout ended in four years after its two plan. During this timeline starting in March of 2005 AIG designates Martin Sullivan to take Maurice Greenberg place. He comes to be announced as the third CEO in the history of AIG. In May of 2005: the New York Attorney General Eliot Spitzer filed suit against AIG then Greenberg suing them for using deceitful...