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AIG was founded in 1919 by Cornelius Vander Starr in Shanghai , China . Starr was the first Westerner in Shanghai to sell insurance to the Chinese.
AIG owns ILFC, the world's largest aircraft leasing company, with hundreds of aircraft from to Boeing 747-400 .
It also is the world's leading international insurance and financial services organization, with operations in more than 130 countries and jurisdictions.
November of 2004 the AIG scandal cost AIG a $US 126 million settlement with the SEC and the Justice Department that resolved the matter in part, but the insurer must still co-operate with investigators who are continuing their probe into the sale of a "non-traditional insurance product".
The settlement was related to a so called "finite insurance" product.
In 2005, after an AIG scandal on insurance and mutual funds the year before, AIG is under investigation for accounting fraud. The company already lost over $58 billion worth of market compensation because of the AIG scandal.
AIG has the fastest decrease in market value since the WorldCom and Enron scandals. Investigations also discovered over a billion US dollars worth of errors in accounting transactions.
One such error involves a supposedly $500 million transaction with Berkshire Hathaway that drastically inflated AIG's revenues. This error involved reinsurance transactions.
Prosecutors attempted to convince a federal judge Thursday to consider investor losses as great as $1.4 billion when sentencing five insurance executives convicted of a scheme to manipulate the financial statements of American International Group Inc., one of the world's largest insurance companies.
Four former executives of General Re Corp. and a former executive of AIG were convicted in February of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.
Prosecutors told U.S. District Court Judge Christopher Droney that many investors lost money as a result of the scandal, and that the loss should be considered when passing sentence.
They cited studies by an expert that concluded the fraud-related losses to AIG shareholders totaled $543 million to $1.4 billion.
Prosecutors said the defendants participated in a scheme in which AIG paid Gen Re as part of a secret side agreement to take out reinsurance policies with AIG in 2000 and 2001, propping up its stock price and inflating reserves.
Reinsurance policies are backups purchased by insurance companies to completely or partly insure the risk they have assumed for their customers.
General Re is part of Berkshire Hathaway Inc., which is led by billionaire investor Warren Buffett of Omaha, Nebeaska.
Droney requested more written information from both sides by the end of next week before he quantifies loss and determines what, if any, restitution the defendants must pay. A sentencing date has not been set.
Originally posted by Angus65
My father was an insurance agent and sales manager for Prudential and John Hancock for many years. Most life insurance companies have annual sales conferences for their top agents and managers. Company executives attend them, but that does not make them an "executive" retreat. This is sensationalism nothing more.
This "executive" retreat was such a sales conference. As such they are planned one to two years in advance. They have contracts with the resorts. Which means if they cancelled the conference so close to the event, there probably would have been fees and penalties. Had they done that, I'm sure the spin would have been it was a conference to reward the little guys and they got screwed by the heartless executives -- and the company wasted money because of the cancellation penalties.
I'm sure at least some will still scream about it, but it is not what has been presented by the MSM.
Originally posted by carewemust
reply to post by R3KR
The trip was booked and paid for almost a year ago..back when sales
contest was first announced. Right at this moment I see 5 insurance
companies with pre-planned and pre-paid sales reward vacations for the
February thru June 2009 timeframe. They can only be cancelled by the
host insurance companies with huge penalities, with the exception of
"Acts of God". Bad mortgage holdings by one of the subsidiaries does
not qualify as an act of God.
[edit on 8-10-2008 by carewemust]
NEW YORK -
American International Group Inc. is borrowing an additional $37.8 billion in cash from the federal government, this time through a loan backed by investment grade, fixed-income securities.
The $37.8 billion loan is on top of an $85 billion loan AIG received last month from the government in an effort to remain in business as the insurer faced a liquidity squeeze.
AIG, one of the world's largest insurers, will borrow up to $37.8 billion from the Federal Reserve Bank of New York using securities that were previously lent by AIG insurance subsidiaries to third parties
Friday, July 11, 2003
High on New York
By design, I knew this week was going to be a storied conclusion to my successful consulting assignment at AIG Corporate eBusiness. I had planned a busy week of meetings for Victor and I to launch him into all the parallel tracks of information architecture activity I started. By the end of today, we had met with most of senior management in Corporate R&D (parent to eBusiness), touched all the functional groups across the web property operations, visited some of the business units with active eBusiness projects, and received status briefings on the RUP and CMM initiatives. Victor's notebook is already half full and I think I've set him up for some interesting nights of REM sleep.
Yesterday's schedule changed from purposeful to monumental when I got permission to visit the 66th floor observation gallery at the top of the AIG Headquarters building at 70 Pine. Post 9/11, the building became the highest vantage point in Lower Manhattan, but the gallery is only used by senior executives to entertain clients. My interest in 70 Pine was fueled by reading Skyscraper Rivals, a history of the pre-World War II buildings in the financial district with an emphasis on The AIG Building. This photo of the gothic peak of the tower framed by an American flag was made earlier this year while looking up from Chase Manhattan Plaza.
We cleared security checks in the lobby and were ready to meet "Vinnie" for an elevator ride up to the 60th floor executive dining room. From there we transferred to a small elevator that took us to 66th floor. The elevator car comes up out of a trap door in the floor (!!!), which you can see closed on the left side of the photo above. Before being electrified by the views of the skyline, we were captivated by the art deco interior of the deck. An ornate globe rests on the marble floor of the octagonal room and covers up the old Citgo logo. In the direction of each of the main compass points, there are one of eight balconies edged with ornate aluminum metalwork. Vinnie graciously opened up most of the balconies for us despite his concern about high winds. Much More…..