Abstract
This paper relates that the core question of J. W. Schoen's article, "Why Can't We Just Let AIG Go Under", is, given AIG's behavior before and after receiving the bailout money, for what reasons cannot the government just let these big companies fail. Next, the author relates Schoen's argument that, without the bailout money that was given to AIG, many states like California, banks and investment firms, other corporations and businesses and the economies of the US and other countries would have been affected deeply and negatively. The paper concludes that the solution might be to sell off the pieces that make up AIG because, as the article stressed, despite the bailout, AIG is not doing its part to improve its situation.

From the Paper
"This is not a mere opinion of mine; it is a conclusion drawn from the author's explanation of banking principles, especially in the area of bank interconnectedness and the rationale behind bank loans. According to the author,if AIG had failed other banks would have also failed. The problem with allowing a bank to fail is that banks are interconnected; it is like a global river of money that people rely on to keep the economy moving. If too many banks fail, the river of money starts drying up and reaches a critical level of dying, so the government needs to quickly pump more money to return the river of money back to a safe level."

Tags:meltdown bonuses, great depression, interconnectedness, subprime mortgage

Abstract
This paper explains that the American International Group--AIG, the world's largest insurer--was reported to have arranged deals to manipulate financial figure in its own records and those of General Re, a reinsurance company, resulting in financial fraud during the autumn of 2000. The author points out that AIG also was involved in another accounting fraud with Brightpoint Inc., which was reported by the Securities and Exchange Commission in 2003; AIG worked closely with the Brightpoint people to tailor an alleged insurance policy that let Brightpoint overstate its earnings by an amazing 61% in a cash circulation deal from Brightpoint to AIG and again back to Brightpoint. The paper defines receivables are monies due from the customers, which are tallied by invoices and happen due to operating cycle's process of selling inventory or services on terms that permit delivery before cash is collected.

Table of Contents
The General Re Fraud
The Brightpoint Fraud
Cash & Accrual Basis of Accounting
Receivables and Inventory
Fixed and Intangible Assets
Liability & Stockholders Equity

From the Paper
"Under the cash method of accounting, the books are maintained on the actual cash flow. Income is recorded on its receipt and expenses enter the books on their actual payment. Whereas majority of the businesses use the accrual basis, the most correct method for the company depends on the sales volume, credit policy of the company and business structure. In case of the accrual method, income & expenses are recorded while they occur, notwithstanding whether there has been exchange of cash and an example of this is sale on credit. Accrual method is appropriate when the annual sales are more than $5 million and the business is a corporate organization. Besides, it is suggested that while selling on credit, matching of income and expenses during a given period must be done."

Tags:cash-circulation, invoices, cash-method, reserves, equity

Abstract
This paper analyzes the AIG bailout and the automaker bailout in an attempt to ascertain the criteria that the government used regarding these bailouts. The paper examines the rationale for each bailout and looks at the major differences between them. The paper identifies the major difference between the government's bailout of AIG and the Big Three automakers that appears to be with respect to ownership and control of the organizations. The paper reaches the conclusion that the government treatment of the auto industry as compared to the financial institutions seems reasonable.

Outline:
AIG
Automakers
Similarities
Differences
Conclusion

From the Paper
"AIG was seen as "too big to fail" in large part because its operations were intertwined with financial institutions the world over. If AIG failed, a wide range of domestic and foreign financial institutions would be put on the brink of collapse. In addition, the company's 70 million policyholders and tens of thousands of employees would also suffer, creating a chain reaction that could cripple the world economy. In some respects, the global implications of an AIG failure provided much of the impetus for the original bailout. The US government may have been worried about the policyholders and other domestic players, but the mortgage-backed security market had become a source for liquidity, as foreign governments and financial institutions leaned on MBSes as a means to hold US dollars."

Tags:taxpayers, funds, CEOs

Abstract
This paper presents a case study analysis of the liquidity crisis that began in 2004 with American International Group, Inc (AIG). The paper explains the scandal involving AIG and General Re (the primary insurer to AIG, the reinsurer) and thendiscusses the new reform measures that have been imposed in the reinsurance game since the scandal and convictions.

From the Paper
"At this point the government and the American people own AIG and they are still climbing out of their gigantic hole. As we learned with Enron, now AIG, and many other scandals in the past ten years, things are changing in the US. Technology is at an all-time high and continues to improve nearly every day. In fact, we double the amount of storage space per square in computers once every 18 months, which is a significant change from the original computers which took up a whole room. This added technology and gained intelligence by the American people, lawmakers, and regulators nearly ensures that companies that use illegal practices (especially in accounting areas) will get caught in today's world. Personally, it makes me wonder how much we really grew in the 1990s and how much was fraudulently recorded."

Tags:finance, bailout, reinsurance, insurer, conviction

Abstract
The paper outlines how CEO Edward Liddy was placed at the head of AIG when it received $153 billion in capital loans and financial injections. The paper then reveals that, after the government bailout, AIG paid year-end performance bonuses in the amount of $165 million to its employees. The paper discusses how these bonuses represented mismanagement, greed and arrogance to most Americans. The paper considers the arguments of proponents of the bonuses and then offers two recommendations to CEO Liddy with respect to external communications. The paper explains why Liddy should not be too concerned about employee morale and the poor performance of workers.

From the Paper
"The current economic crisis was precipitated by the collapsed of the subprime mortgage market. When the housing bubble burst, home values began to stagnate. Many subprime borrowers had not only taken out loans that they could not afford to service, but they had signed on for interest rate schemes that resulted in their rates stepping up dramatically after the first couple of years. The result was that these individuals could not make payments on the new rates and with the market collapsed they could not sell their homes either. The result was defaults on a massive scale."

Tags:taxpayers, morale, employees, mismanagement, greed

Abstract
The paper looks to the savings and loan crisis to see one of the main antecedents of this decade's fiscal irresponsibility. The paper focuses on the AIG bailout and explains that the cost of the bailout is less than the cost to the economy if the bank failed. The paper discusses how these bailouts are a short-term measure, a means by which the government can buy time in order to make structural changes and address the underlying causes of the financial crisis.

From the Paper
"The improved governance came in the early 1990s as a consequence of the savings & loan crisis, which had its roots in a real estate bubble similar to the one in the mid-2000s that precipitated the current financial crisis and bank bailouts. Deregulation was a major contributor to that crisis (Glasberg & Skidmore, 1998). The government would ultimately intervene in the financial system in order to preserve its integrity. This experience would form the core of bailout philosophy for the current situation and can be studied to provide clues as the impacts that the current bailout will have."

Tags:savings, &, loan, crisis, credit, regulations

Abstract
This document discusses the need for the AIG WarrantyGuard Company to implement a relational database solution in order to reduce human error and increase efficiencies. This solution will also simultaneously impact revenues in a positive manner because invoicing and billing processes will be maximized. Additionally, the paper discusses how customer service quality will also be positively impacted through the facilitation of e-billing strategies enabled through the implementation of a relational database application.

From the Paper
"AIG WarrantyGuard, Inc. (AIGWG) is a watch warranty company that accepts, completes and submits watch warranty invoices for warranty work done on behalf of OEMs for their customers. These warranty forms are complicated, time-consuming to complete and often rejected on the basis of simple clerical errors. The entire invoicing and billing procedure consumes substantial resources in terms of human capital spent completing and processing them, submission, and re-processing them if they have been rejected. Additionally, operating revenue is frozen while these invoices for billing are in the approval and payment process which, due to these invoicing clerical type errors, freezes a substantial amount of revenue from application elsewhere."

Tags:relational, database, mysql

Abstract
The paper analyzes the Federal Reserve Bank's response to the AIG, Lehman Brothers and Merrill Lynch crisis in terms of its implications on financial institutions, interest rates, inflation and the value of the US dollar. The paper discusses how the interconnectedness of these financial institutions made effective measures necessary, but shows how there is no guarantee that these injections into the world economy will boost investor confidence.

Outline:
The Federal Reserve Banks Response to Financial Institution Crises
Analysis of The Fed's Response
Implication on Financial Institutions
The Fed's Response and its Implications for Interest Rates
The Fed's Response and Inflation
The Fed's Response and Its Implications on USD
Conclusion

From the Paper
"In light of the AIG, Lehman Brothers and Merrill Lynch crisis, the Federal Reserve Bank as well as other large central banks namely the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank have decided to inject USD180 billion in the world economy in an effort to avert further bank failures. It is quite disturbing that in the past few days, three of the financial industry's largest firms collapsed as a result of the rippling effects of the sub-prime mortgage crisis. It is good, however, that the Fed saw fit to act swiftly to remedy this problem but, the question here arises: Will the Fed's response be effective in remedying the crises at hand. Also, what are the effects of an injection of this magnitude into the world economy? "

Tags:AIG, Lehman, Brothers, Merrill, Lynch, inflation, dollars, interest, rates, bailout, bankruptcy

Abstract
The paper discusses how there are some similarities between the financial scandals involving companies such as Enron and WorldCom that are representative of the dot.com market crash and the current market failures. The paper reveals that although Enron and WorldCom's failures related to criminal activity and overt market manipulation and the present market issues such as those affecting Lehman Brothers and AIG relate to liquidity issues due to inadequate risk mitigation strategies, creative accounting practices were employed in both instances.

From the Paper
"There are some similarities between the financial scandals involving companies such as Enron and WorldCom that are representative of the dot.com market crash and the current market failures. Although Enron and WorldCom's failures related to criminal activity and overt market manipulation and the present market issues such as those affecting Lehman Brothers and AIG relate to liquidity issues due to inadequate risk mitigation strategies, creative accounting practices were employed in both instances. It is clear that one universally accepted characteristic of creative..."

Tags:financial, scandals, enron

Abstract
This paper examines the recent economic crisis faced by banks as a result of defaults on loans. The widespread economic fallout is also analyzed. First, the paper describes Alan Greenspan's logic on bank loans, further citing how loans were made at the beginning of the 21st century. Next, the paper discusses the failure of large corporations such as AIG and the relationship to credit default swaps. The paper concludes by making recommendations on how to avoid financial crises such as this in the future.

From the Paper
"In short, Greenspan conceded that the economic creativity and rapacity of Wall Street had exceeded his and other economist's wildest expectations. The federal bureaucratic system put into place after the debacle of the Great Depression may have addressed the concerns raised by that particular financial catastrophe, but today's economy is a far different world. Perhaps one small but telling example of how little the federal regulatory system of banking had changed since the New Deal was that the government only recently and temporarily raised the amount of money it would ensure for individuals from $100,000 to $250,000 ("US FDIC says higher insurance limits helpful," Reuters, 2008). The wariness about interfering with the banking system was so extreme; it took the threat of another crisis and the failure of such stalwart banks as Washington Mutual to move the Fed's hand to raise the amount, which had existed at $100,000 for decades, despite inflation."

Tags:credit, deregulation, Alan Greenspan, mortgages, foreclosure, regulation