분야
pptx2. CASE QUESTIONS
3. Q & A
“ The likelihood that significant economic change in one country will spread to other countries.”
-Investopedia-
1. CLOSING CASE
American International Group
When the financial crisis in the U.S. in late 2008, many nations could not avoid contagion and its pernicious effects.
In the United States, a notable casualty was AIG.
In 2008,
AIG’s near collapse was symptomatic of contagion.
In an effort to prevent the crisis from spreading worldwide.
In its prime, AIG was the world’s biggest insurer, trusted for stability and for the financial protection it offered. AIG exemplified how a financial services firm could multiply its success through global expansion AIG Financial Products, one of numerous subsidiaries, was the source of AIG’s collapse. In 2008, AIGFP reported assets of $860 billion 116,000 employees, and average sales of more than $7million per employee. Under pressure to increase revenues and profits in the late 1990s, AIGFP’s London office began insuring bundles of debt, known as collateralized debt obligations(CDOs)
From there, AIGFP created an instrument to insure CDOs, called a credit default swap(CDS).
