Read through the following overview of a history of AIG and decisions that led to outcomes associated with the recent financial crisis, government bailouts and corporate bonus scandals. in this case, we trace the history of AIG as it evolved into one of the largest and most respected insurance companies in the world, and explore the more recent events that fed to its demise. AIG had a market value of close to $200 billion in 2007, but by 2009 this amount had fallen to a mere $3.5 billion. Only a government rescue of what has amounted to $180 billion in loans investments, guarantees, and financial injections prevented AIG from facing total bankruptcy in late 2008. The government rescued the company not to keep it from bankruptcy, however, but to prevent the bankruptcies of many other global financial institutions that depended on AIG as counterparty on collateralized debt obligations. If AIG had been allowed to fail, it is possible that the financial meltdown that occurred in 2008-2009 would have been worse” (Ferrell, Fraedrich & Ferrell, 2011, p.364) Again, leaning on our experience, previous readings and frameworks describing constituencies, to your eye, who were the primary stakeholders in this case study? Regarding governance of AIG practices across multiple Leadership figures; what assumptions might we make about the environment at AIG which supported a continuing set of behaviors in the corporate culture of AIG? What are some underlying assumptions of executives we might make, as to who and what AIG was responsible for or could ignore? Ferrell, 0.C., Fraedrich, J., and Ferrell, L. (2011). Business Ethics: Ethical Decision Making and Cases, Ninth Edition. South-Western: Mason, OH
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