Aig Research Project

AIG Ethics Article Review This paper will discuss ethical motive behavior at AIG or lack there of depending on your perception of the summerized article. Companies today are under severe scutiny because of the contumely of a few overzealous executives who whitethorn have outplayed their hands. The U.S. Securities and ex revision Commision (SEC) has exposed more than a few of these executives who tried to shoot the world. Now with the implementation of the Sarbanes-Oxley Act along with the SEC, the public whitethorn now feel as though ethics may be restored. The Sarbanes-Oxley Act of 2002 was signed into law on July 30, 2002 by President Bush. The new law came l haver on major corporeal scandals involving Enron, Arthur Anderson, WorldCom. Its goals are to protect investors by improving accuracy of and dependableness of corporate disclosures and to restore investor confidence. The law is considered the most important change in securities and corporate law since the New Deal. The act is named after Senator Paul Sarbanes of Maryland and Representative Michael Oxley of Ohio (Wikipedia Online). American International Group, the largest insurance broker in the U.S., disconnected more than $5 billion in the fourth quarter as bad computer address ate into its investments.

AIG has been thrust to the forefront of the credit crisis gripping financial markets by contracts known as credit default swaps. These swaps pledge to brood missed payments on $579 billion in debt. AIGs swap portfolio mazed $11.12 billion in value during the fourth quarter because decaying credit quality means the insured debt is less likely to be repaid. AIG also lost more than $3 billion in its investment portfolio because of significant, rapid declines in the value of mortgage debt. AIG lost $5.29 billion, or $2.08 a share, in the fourth quarter, compared with profit of $3.44 billion, or $1.31 a share, in the fourth quarter of 2006. Investigators believe that AIG may have goosed its financial performance with... If you want to get a full essay, order it on our website: Ordercustompaper.com

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