Mortgage Insurance ( Http )

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(http://www-111.aig.com/AIG_Internet/AIG_2014_Annual_Report.pdf) Mortgage Insurance (http://www.reuters.com/article/2014/07/16/us-bankofamerica-mbs-settlement-idUSKBN0FL1B720140716) (http://www.propertycasualty360.com/2015/11/03/moodys-warns-of-negative-impact-in-proposed-aig-br ) (life Insurance)http://www.vault.com/company-profiles/insurance/american-general-life-insurance-company/company-overview.aspx, http://www.vault.com/company-profiles/insurance/american-international-group,-inc/company-overview.aspx Property & Casualty : (http://www.trefis.com/stock/aig/articles/237266/aigs-property-and-casualty-business/2014-04-30#footnote_0_237266 ) (http://marketrealist.com/2015/03/underwriting-profits-property-casualty-insurer/)…show more content…
He suggested to de - conglomerate their insurance company to three single line business consisting of Life Insurance, Property & Casualty and Mortgage insurance. The financial crisis showed us the iconic and near failure of AIG. Had it not been for the bailout from the Federal Reserve, AIG would have met the fate of Lehman. It took AIG half a decade to stabilize their share value which had taken a hit. A separation at this point will turn AIG and its division into rubble. Introduction : AIG, one of the biggest insurance company was always considered to be way too much important for the economy 'too big to fail ' by everyone which is why the Federal Government had to use their bazooka for the bailout. What led the near collapse of AIG is the large amount of Credit default swaps that they were dealing with. The loan that consumer had taken under mortgage backed security had defaulted. Absence of stringent regulations majorly led AIG to accumulate huge amount of assets in the form of real estate. In due course of time the real estate was termed as 'toxic ' which was the major reason that led to the start of 'economic meltdown '. Is AIG really 'too big to fail ' or it is a misconception prevalent in places. Carl
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