Aig and the Financial Crisis - 1972 Words

AIG and the Financial Crisis In 2008 United States of America suffered a massive financial crisis. The entire economy was affected, and a lot companies were forced into bankruptcy. AIG was on the verge of being bankrupt until the government decided to bailout the company. Now the AIG is being controlled by the government to restructure and recover assets. According to Kathy Gill about 80 percent of the AIG is controlled by the government (Gill). There are many reasons that lead to the fall of one of the largest insurance company in America, but the four that stand out the most are leverage provided by the government, the creation of Collateral Debt Obligations (CDO), the use of Credit Default Swaps (CDS), the arrogance to believe nothing†¦show more content†¦Companies got to greedy and started to make CDO’s out of Subprime mortgages instead of prime mortgages. The difference between prime mortgage and subprime mortgage is the risk involved. Subprime mortgages are the riskier security, and when th e companies couldn’t find any prime mortgage they turned to the subprime mortgages. This greed lead to the fall of AIG, because of the risky CDO’s that AIG was involved with. Since the CDO’s defaulted AIG had to provide companies money for the insurance they guaranteed on those CDO’s. With tons of these CDO’s failing all the companies started to perform poorly too, and eventually the financial crisis had started to take a toll on the economy. How did Credit Default Swaps work? The insurance that AIG provided was one of the main problems that lead to the company’s destruction. Credit Default Swaps (CDS’s) were insurances for the CDO’s that other companies owned. It’s humorous when looking at the description of Credit Default Swaps (CDS’s) because it does not make sense since it means insurance for the debt you own. CDS’s were created by a group of bankers from JP Morgan in 1994 on a trip to Florida (Philips). They were trying to come up with a plan where they can lessen the risk for the loans they give out. According to Matthew Phillips JP Morgan †¦ â€Å"built up a â€Å"swaps† desk in mid-90s and hired young math and science grads from schools like MIT and Cambridge to create a market for a complex instrument. (Philips)†Show MoreRelatedAmerican International Group Inc.1247 Words   |  5 PagesIntroduction American International Group Inc. or simply AIG specializes in the insurance industry. It is engaged in a range of insurance related businesses in the United States and across the borders. It maintains and operates four main business segments: General Insurance, Domestic Life Insurance Retirement Services, and Foreign Life Insurance Retirement Services. AIG also offers financial services to its customers (one source, 2011). The company holds 11th position in the Forbes 1000 companiesRead MoreCredit Default Swap856 Words   |  3 Pages Credit default swap In 2008, the financial crisis hit, which resulted some large financial institution faced the threat of collapse as well as downturns in stock markets around the world. The credit default swap plays a significant role in the financial crisis, especially the failure of AIG. Credit default swap (CDS )is a financial instrument that is designed to trade credit risk that a reference entity has credit events, and it is a credit derivate that is tradedRead MoreCase Study Aig914 Words   |  4 PagesCoping with Financial and Ethical Risks at American International Group (AIG). Abstract American International Group, Inc. (AIG)   reported bogus transactions that hid losses and inflated its net worth. AIG inflated reserve funds that were to be used for paying claims by millions of dollars and that AIGs CEO Maurice Greenberg repeatedly directed AIG traders late in the day to buy AIG shares to prop up its price. However, aside from AIG’s corporate financial reporting errors or outright fraudRead MoreThe Globalization Of The World Economies Is A Direct Result Of Globalization1309 Words   |  6 PagesOver the past few decades, particularly during the 2000s, financial markets around the globe have become increasingly interconnected (Shmukler, 2004). This mounting integration of the world economies is a direct result of globalization. Particularly, the globalization of financial markets is characterized by substantial cross-national flows of capital and the development of a large foreign exchange market. Every day around the world, banks and stockbrokers transfe r vast amounts of money across countryRead MoreHow Bernanke Deals With The Financial Crisis And The Aftermath Decision1493 Words   |  6 PagesChairman but also a great and knowledgeable economist. President Obama described him as â€Å"epitome of clam†. However, his career has huge merit, also has artificial wrong, merit half-and half. The Wall Street Journal commented that after suffering a financial crisis which he has never been through, the Fed Chairman Ben Bernanke lead United States avoid involving into a devastating panic. After five years, he used uncustomary policy to help United States to achieve economic recovery; however, the result isRead MoreMarket Crisis And Its Effects On The Housing Market1460 Words   |  6 Pages According to Fligstein, the next step in market formation was crisis. In The Architecture of Markets he states, â€Å"market crisis is first observed when incumbent organizations begin to fail.† From 2007-2009, the housing market crashed as the value of homes in the US fell drastically. As a result, many homeowners began defaulting on their mortgages causing huge problems for those involved in the mortgage securitization market. On September 7th, 2008 when the Federal Housing Finance Agency (FHFA)Read MoreThe Financial And Political Systems Have Always Played1226 Words   |  5 PagesThe financial and political systems have always played a major role in stabilizing the society and ensuring a smooth transition between public policies and economic activities. Over the past decades, we’ve witnessed the global crisis of 2008, which costs â€Å"tens of millions of people their savings, their jobs, and their homes†. Interestingly, the root of the problem comes from the corruption of the financial industry and how the political figures respond to the crisis. This response paper correspondsRead MoreThe Financial Crisis Of Lehmann Brothers1379 Words   |  6 PagesThe 2008 financial crisis, also known as the U.S. Subprime Mortgage crisis, is considered by many economists to be the most perilous crisis faced by the modern day world economy since the 1930s Great Depression (Krugman, 2009). The collapse of Lehmann brothers, one of the world’s leading investment banks before declaring bankruptcy, in September 2008 almost took down the world’s financial system. Many factors such as U.S. Home ownership policies, consequential securitisation, irresponsible lendingRead MoreEssay on Summary for Too Big to Fail1217 Words   |  5 Pages This book focus on the collapse of the investment bank Lehman Brothers, Merrill Lynch was sold by Bank of American, Freddie Mac and Fannie Mae was nationalized, and the government took 80 percent of AIG that took place on the weekend of September, 15, 2012. Significantly, he examined the financial markets reactions to the bankruptcy of Lehman Brothers. It starts with the failure of Bear Stern, one of the biggest banks in American. Bear Stern found the bank having too many toxic assets and couldRead MoreInside Job Movie Review1111 Words   |  5 Pagesconsequences of the global financial crisis of 2008. This movie is basically related to recession that was caused by the inefficiency of the industry and the unfavourable banking practices. The director has conducted several interviews and has exposed some hidden realities. The movie clearly shows that this crisis was not accidental, and that there were many people, including regulators, politicians, businessmen, who were actively involved in this destruction. These people and large financial institutions knew

Essay about Cultural Competency in the Workplace - 1197 Words

Today’s management in the workforce is composed of all types of people verses thirty years ago when white males held a majority of upper-management positions in companies. These positions are now held by a mixture of ethnic back grounds and women who hold just as many if not more management positions then men. Just by looking at the changes in management demographics shows how important it is for people to understand cultural competency in the workplace. Dr. Roosevelt Thomas Jr. (1999) stated, â€Å"Diversity is the collective mixture of whomever we have in our workforce characterized by their differences and similarities† (p.11). Managers and supervisors must understand the characteristics of a diversity mature individual; they also need to be†¦show more content†¦Also the individual must be willing to continue building his or her awareness of the effects of cultural competency in the workplace by keeping up with current events. nbsp;nbsp;nbsp;nbsp;nbsp;Finally, the individual needs to be comfortable when dealing with the dynamics of diversity. This person will need to utilize a process framework in addressing diversity. This means take the time to understand both sides of the story before deciding who was wrong. Sometimes a saying may be interpreted wrong because it may be acceptable in one culture but not the other. A diversity mature individual will take the time to ask questions to better understand the situation, and then provide a solution to help both parties resolve the matter in a peaceful way. This technique will allow employees to regain focus and continue performing at peak levels. nbsp;nbsp;nbsp;nbsp;nbsp;Martin and Tulgan (2002) claims, â€Å" Affirmative action is the positive steps an employer takes to employ women and minorities in numbers equal to or greater than their availability and to proactively seek to employ those with disabilities and veterans† (p.89). Over the course of the years equal employment opportunity laws and regulations were put in place. The Equal Pay Act was established in 1963 to set pay based on the job category, and to prevent wage differential based on gender. In 1965 the Executive Order 11246 was passed to stopShow MoreRelatedThe Importance Of Cultural Competency On A Healthcare Organization1021 Words   |  5 PagesImportance of Culture Competency in a Healthcare Organization The information in this paper is based on interviews from two executives, research, and personal experiences. Further it will define cultural competency and provide the viewpoints from two executive level employees on the importance of developing a culturally competent environment for their patients and staff in the healthcare setting. Cultural competency from the health care perspective is defined according to † (Betancourt, J.R.Read MoreCultural diversity is defined as the cultural variety and cultural differences that exist in the600 Words   |  3 PagesCultural diversity is defined as the cultural variety and cultural differences that exist in the world, a society, or an institution and or the inclusion of diverse people in a group or organization. (dictionary.com) This paper will discuss some of the general competencies required to be successful while working in a culturally diverse environment. Not only is diversity in the workplace inevitable it is necessary and makes perfect business sense. The concept of diversity within the workplace includesRead MoreToo Many U.S. Expatriate Managers Fail Essay659 Words   |  3 Pagesmanagers end up quickly or they are found to be ineffective by their seniors. The major factors contributing to the failure of U.S expatriate managers include family stress, emotional immaturity, cultural inflexibility, over work and physical breakdown. Let’s discuss the reasons of family stress and cultural inflexibility. Stress experienced within family has been perceived as a factor that leads to the failure of an expatriate manager. It takes a bit of time for managers and their families to adjustRead MoreCultural Competence And Why Is It Important1027 Words   |  5 Pages Competency 1 Understand cultural competence and why is it important especially for that have a diverse workforce. The United States has become increasingly a culturally diverse society. The understanding of cultural relativism in a multicultural working environment can be of a great importance to the success or failure of an organization. What is cultural competency? Before we explain it, let’s take a step back and analyze culture, cultural diversity, and Cultural relativism. Objective 1a: DefineRead MoreCultural Competency And Health Care1462 Words   |  6 Pages Cultural competency is secure, respectful, reciprocal relationships and partnerships, which respects for diversity and obey expectations and equity. In today’s society, cultural competency is quite important to the worldwide healthcare due to the cultural differences. In Melbourne, Australia, Monash Health is a community service in the local government area (LGA) of Monash. In order to demonstrate the features and importance of cultural competency, details of this community (Monash) are going toRead MoreHealthcare Management and Article Critique709 Words   |  3 Pagesnationalities. As a result, managing diversity in the workplace and promoting multi-cultural competency have become essential to the success of these organizations. As a healthcare manager, the major steps I would take to manage diversity in the workplace include reforming organizational structures, systems, and processes and transforming the organizational culture (Lappetito, 1994, p.22). In addition, I would implement four steps to promote multi-cultural competency including ensuring staff diversity is a reflectionRead MoreNational Vocational Education And Training Regulator Act 20111613 Words   |  7 PagesRegulator Act 2011 and refers to a group of frameworks and systems that define the operational set up of RTOs. The three key features are: (i) Industry led – this features learning outcomes that are defined by representatives from the industry and workplace. These outcomes address ‘real life’ expectations. In my field of design, this may be defined by developing assessment based on a mock studio set up where the teacher is a client and the students work off a brief given by the client. (ii) NationalRead MoreCross Cultural Relationships1105 Words   |  5 PagesCROSS CULTURAL RELATIONSHIPS As the world becomes more and more internationally connected, the need to understand people from different cultures and how to interact appropriately with them also increases. Managers and leaders need to develop intercultural competences that can help them be more aware of their own culturally-based perceptions, norms, and patterns of thinking, and consequently adapt their behaviors according to specific cultural contexts. Managing people across cultures  offers solidRead MoreWhat Is Cultural Intelligence (Cq)?. The Cultural Intelligence1494 Words   |  6 PagesWhat is Cultural Intelligence (CQ)? The Cultural Intelligence Center defines CQ as a tool that â€Å"measures your capability to relate and work effectively in culturally diverse situations† (What is CQ Anyway?, 2017), noting that CQ is a form of intelligence that has been tested by academic researchers in over 98 countries for nearly two decades. Cultural Intelligence (CQ) is the ability to understand key cultural standards of a colleague’s culture, to listen, discern, and modify someone’s behaviorRead MoreCulture can include, but is not limited to ethnicity, spiritual belief, tribal affiliations,1400 Words   |  6 Pagesculturally competent care, acknowledging the importance of culture and the expansion of cultural knowledge and the adaptation of services to meet culturally unique needs. When looking at Description of the relevance and relationship between culture/ethnicity, socioeconomic status, and cultural competence When considering health, it is vital we identify the relevance and relationships between culture, cultural competence and socioeconomic status and how they may affect an individual in receiving appropriate

Tanks in World War I Free Essays

In 1915 Europe was in the midst of World War I and was at a stalemate caused by trench warfare. There was a need for new and revolutionary weapons to end the dilemma. The British found a solution to this problem by inventing tanks. We will write a custom essay sample on Tanks in World War I or any similar topic only for you Order Now The invention of the tank had numerous pros and cons, but it ultimately changed warfare. Tanks were built for the purpose of traversing through trenches. Trenches were becoming a literal wall and prevented either side from advancing. Tanks were the solution to the predicament that was the Western Front. The first prototype was called Mark I and was tested for the British Army in the September of 1916. Tanks were progressive and enabled many new tactics. They used caterpillar tracks which had a less likelihood of becoming stuck due to sinking. Tanks offered protection against firearms and intimidated German infantry men that were shocked deeply by the fact that they cannot destroy a tank with machine gun alone. Tanks were also great for accompanying infantry to protect them. There were also cons that went along with the use of tanks. Tanks were very slow, moving at a rate of four miles per hour; casual human walking speed. They were mechanically unreliable, and broke down frequently. Most of the time tanks were hot, numbingly loud and generally uncomfortable for the crews. After the British introduced the tank into the war other countries had their own variations. France launched their first tank, the Schneider CA1, shortly after Britain had introduced the. Mark I. These tanks were the same as British tanks in most aspects, except for that they moved faster by 1 mph. Close to the end of World War I, Germany had their own tank. The A7V, nicknamed â€Å"The Moving Fortress† by the British because of the shape of the hull, was entered into war in 1918 and were in action for eight months. One hundred vehicles were ordered during the spring of 1918, but only 21 were delivered. How to cite Tanks in World War I, Essay examples

Baz Luhrmann Romeo and Juliet Analysis Example For Students

Baz Luhrmann Romeo and Juliet Analysis Shakespeares second tragedy, Romeo Juliet, was written between 1594 1596. The tragedy is brought about by fate and the story is based on an Italian Legend, which was well known in England at the time. Baz Luhrmann directed the modern day film. It is shot in Mexico, although it is meant to be Verona Beach which is a sexy violent world neither set in the future, nor the past. The opening scene or prologue is a news report. The film ends with this theme of an ongoing news report. The lines are: Two household, both alike in dignity, In fair Verona, where we lay our scene, From ancient grudge break to new mutiny, Where civil blood makes civil hands unclean. From forth the fatal loins of these two foes A pair of star-crossd lovers take their life; The language is still the old Shakespearean English but instead of being spoken with a proper English accent it is spoke in a modern American accent which makes it a lot easier to understand. The story of Romeo Juliet has some universal themes including; intensity and passion, youth, the division and opposition of generations, youth finding their independence and gang and sectarian warfare. Each of these themes has cultural relevance today. The representation of characters is a signifgant role in the film. The Capulets are shown to be big macho family always looking for a fight. In the garage scene the Capulets drive up in a big sports car, they are dressed in black and have facial hair to give them a very tough menacing look. Tybalt also has metal heels on his boots and he has two guns. On the other hand, the Montagues drive up in a yellow convertible car all wearing bright colored Hawaiian shirts. They seem weaker, more fun-loving characters. Baz Luhrmann took a very modern approach to the cinematography of the film by using lighting, cameras and lenses to their full potential and to bring new senses to your mind. He had an advantage over Franco Zeffirelli as film technology has advanced a lot. He uses a lot of techniques such as highlighting peoples eyes like Juliet when she is talking to Romeo. The props in the film are excellent for example their guns are called swords or daggers to keep to the language of the play. They also link modern themes of todays youth such as the scene before the masked ball where they take the drug ecstasy. The movement of the characters in the film is done in different styles. In the scene at the garage where Tybalt draws his gun and adds a scope on the top, it is like he is praying to God for a good shot to hit the Montague. The pace of the film varies, the love scenes are slow, which gives you an idea of intimacy compared to the fast moving action scenes, which raise your adrenalin and make the film more exciting. The music also works hand in hand with the pace of the film to give you that bit more of a dramatic impact. The Baz Luhrmann Romeo and Juliet film I thought was not bad. It had the right choice of actors. The choices of Leonardo DiCaprio as Romeo and Claire Danes as Juliet were good. This movie was a good watch and interoperation although at parts the language was still a bit hard to under-stand as it was still in Shakespeares poetic style. 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