Case ID: 9B12N001
Solution ID: 19029
Words: 1526
Price $ 45

The Rise and Fall of AIG Case Solution

Case Solution

The Worldwide Economic Crisis (2007-2009) provides fertile ground for consideration of methods the financial services industry works. For several years it absolutely was stated that marketplaces can self-police to ensure that regulation and careful oversight aren't needed. The occasions in the crisis have triggered most of the most powerful advocates of the view, for example Alan Greenspan (former chairman from the Fed), to openly acknowledge the issues with this particular belief. This case views the occasions prior to and following a bailout of AIG to permit attorney at law of methods different internal and exterior factors led towards the crisis at AIG, and the significance of studying all of them more carefully to prevent such problems later on.

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Questions Covered

1- How did the Corporate Structure of AIG contribute to its failure? 

2- Describe how the regulatory environment contributed to market reliance on AIG and how that reliance exacerbated financial market problems? 

3- Compare the operations of AIG-FP to that for insurance firms. Describe how the practices of AIG-FP contributed to its failure. 

4- Broadly describe regulations that a) would have prevented the financial market problems caused by AIG and b) can prevent a recurrence of these problems?