AIG - Blame for the Bailout

AIG - Blame for the Bailout

By
Nathan Blair, Maureen McNichols
2009|Case No.A203

This case takes an in-depth look at the events and causes leading to the U.S. government bailout of American International Group. Source material includes testimony before Congress, AIG’s public disclosures and various news articles. The case tells the history of AIG, its Financial Products division and credit default swaps. The case then highlights several external and internal factors cited by management, experts and the press as having a role in AIG’s failure. These factors include AIG’s governance, compensation and risk management policies, as well as the roles played by the rating agencies, accounting standards (specifically mark-to-market accounting) and regulation.

Learning Objective
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