American International Group, or AIG

Ann-Katrin Kohnle Organizational Behavior AIG American International Group, or AIG, started out as a caller that represented American insurance companies in Shanghai. The company travel on to become a reinsurance company in the United States that would hekp insurance companies sparge their liabilites and in that respectfore aid those companies to grow faster. In 1968, Maurice Greenberg took over as CEO and AIG grew and spread out into countries around the world. Today, AIG does not only extend reinsurance services anymore but to a fault financial services.Maurice Greenberg was born in 1925, is a war veteran and graduated from in the raw York law school. He had a very autocratic approach to leading AIG. His aspiration was to expand AIG and many political pick up figures asked him for advice. Because he gave advice to influential people and lobbied effectively, he was often given the benefit of the odubt when confutable practices within AIG became known. In the early 2000s t here were several investigations into AIG aimed at clarifying soi-disant insurance practices and schemes utilize ot boost AIGs revenue.As a result, Greenberg was asked to step down as the CEO in 2005 and he is receivedly the CEO of C. V. Starr & Co Inc. Greenberg was succeeded by Martin Sullivan, Robert Willumstad, and Edward Liddy, who is the current CEO of AIG. Leading up to the bailout of AIG in 2008, the company was involved in riskier and riskier proceedings. AIG used credit default swaps that allowed other companies to commute their risk to AIG in case their securities defaulted. However, AIG did not relieve oneself enough silver to actually pay all these companies once the turning point hit.As a result, the federal judicature agree to bail out AIG to save it from certain bankruptcy. Not all of AIG was to blame for its downfall, however. one(a) department of the company, AIG Financial Products, dealt with hedge monetary resource and very risky transactions that t ake in AIG billions of dollars but that also brought down the building block company in the end. Even though it seems as though employees of AIG knew about the likely threat the Financial Products section constitute to the entire company, nothing was ever through with(p) to impose stricter regulations on the department.On the contrary, big capital and benefit incentives were given to the employees who brought in the most money. However, the transactions that brought in the most money most often also were the transactions that were the riskiest resulting in a very uplifted risk portfolio. After the bubble change integrity because AIG could not pay the institutions they had promised money to, the government bailed them out mainly because if AIG would have bygone down, many other national and foreign companies that depended on AIG to do well would have failed as well.Until today, Greenberg who was CEO of the company the longest, maintains his innocence and states that he alwa ys acted in the shell interest of the company and no wrong behavior was going on. The big question, however, is if the bailout was essential or justified. Should a company that has gambled away(predicate) individuals and businesses money be rewarded for failing or should they have taken the fall and endured the consequences?