American International Group

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American International Group

(AIG), American multinational insurance corporation whose potential bankruptcy in 2008 led to the largest federal bailout of a private company. AIG was founded as American Asiatic Underwriters by Cornelius Vander Starr in 1919 in Shanghai, China; it soon expanded internationally and became known as American International Underwriters. With the advance of Mao Zedong's Red Army on Shanghai in 1949, Starr moved the headquarters to New York. In 1962 Maurice R. "Hank" Greenberg took over leadership of the company (until he was forced out as chief executive in 2005 because of transactions that created overstated earnings reports) and expanded it by buying up numerous insurance and other financial firms. The company, which assumed its present name in 1967, became one of the largest insurance companies in the world. In the 2000s, however, AIG incurred huge losses relating to subprime home mortgages, both its own and those of other companies and banks it had insured against losses on mortgage-backed securities, although many AIG businesses remained profitable.

By 2008 bankruptcy loomed due to a downgraded credit rating and increased calls for collateral required by the insurance on the mortgage-backed securites. The Federal Reserve Bank, concerned over potentially far-reaching repercussions to the international financial system should AIG fail, agreed to give AIG a line of credit for up to $85 billion in exchange for 80% of its stock, effectivily nationalizing the company. Eventually the Federal Reserve Bank and U.S. government increased their potential support to more than $182 billion through investment and credit lines and by buying mortgage-backed securities. The Treasury Dept. ultimately owned more than 90% of AIG before beginning to sell off shares in 2011. AIG sold a number of its profitable assets in order to pay back the U.S. government, and recovered from its near collapse in 2009. The bailout became controversial because large bonuses were paid to many AIG employees after the bailout (though these were largely later returned) and because some of the financial firms, such as Goldman Sachs, that benefited from the financial stability the bailout was designed to preserve also received sizable payments from AIG after the bailout. Goldman Sachs was also accused by some at AIG of having misled AIG over the quality of the mortgage-backed securities that AIG insured. In 2011 Greenberg brought a class-action lawsuit for damages against the government, contending it had exceeded its authority in demanding its stock in return for aid. The 2015 verdict said the government had had no right to demand the ownership control of AIG, but did not award damages because the company would have become bankrupt without the government aid.

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The development is the result of a unique collaboration between the Seoul Metropolitan Government and AIG Global Real Estate, which acts as the developer, finance arranger and project manager.
Kevin Fitzpatrick, president of AIG Global Real Estate Investment, is a member of the roundtable's environmental committee.
The purchase is a joint venture between AIG Global Real Estate Investment Corp.
Robinson structured and managed commercial real estate investments for AIG Global Real Estate (AIG).
The July 4 festivities, presented by AIG Global Real Estate, co-developer of Atlantic Station, will begin at 11:00 a.
Casa Mexicana, which has joined with AIG Global Real Estate in developing El Encanto en Punta Mita, a luxury residential community on a terraced hillside overlooking the Bay of Banderas, reports that new-home tours over Thanksgiving weekend were up 25 percent compared to the same period last year.
9 /PRNewswire/ -- The surging popularity of Punta Mita as a luxury, second-home resort on Mexico's Pacific Coast, has prompted El Encanto to begin construction on Phase II of its master-planned residential community ahead of schedule, announced the property's co-owners and developers, New York-based AIG Global Real Estate, Mexico City-based BCBA Impulse and Dallas-based Casa Mexicana.
Additionally, in a separate transaction, KWMF and its equity partner AIG Global Real Estate acquired College Park (to be renamed The Grove), a 331-unit apartment property in San Jose, California.
AIG Global Real Estate will undertake the role of developer and project manager, as well as oversee all of the marketing, leasing and management of the complex.