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 (1925–) took over leadership of the company; he remained its head until he was forced out as chief executive in 2005 because of transactions that created overstated earnings reports (he settled the civil accounting fraud changes arising from the transactions in 2017). Greenberg expanded AIG 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 plan, put forward last fall by the mall owner, the New York-based AIG Global Real Estate Services, would greatly reducethe mall's retail space and find new uses for existing buildings, perhaps by opening a hotel, apartments, restaurants or a medical complex.
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She also was a senior associate in the capital markets group of AIG Global Real Estate Investment Corp.
The event was held at The Yale Club of New York City on November 15th, and was attended by executives from leading investment and banking firms such as AIG Global Real Estate / Investment Corp, Cantor Fitzgerald, Johnson Capital, Sandler O'Neill, and Sovereign Partners, LLC.
AIG Global Real Estate Investment Corp consists of a group of companies within AIG that invests in and actively manages about USD16.6bn of real estate for clients and AIG member companies in various countries.
D Avanzo was Deputy Chief Compliance Officer and Vice President of AIG Asset Management, responsible for overseeing all compliance aspects of the real estate funds and capital markets business of AIG Global Real Estate. Previously, she was Chief Compliance Officer and Vice President of Starwood Capital, where she was responsible for the company s global compliance program.
Brent also served as Vice President of Residential Investment for AIG Global Real Estate Investment Corporation, where he was responsible for joint-venture equity investments for multifamily and mixed-use investment platforms.
Martinez has worked with AIG since January 2009 in a variety of positions, including a leadership role at AIG Global Real Estate. For the past two months, he has led a comprehensive strategic review for UGC.
The seller was AIG Global Real Estate Investment Corp and HFF marketed the offering exclusively for them to an undisclosed buyer, which bought the portfolio for about USD165.4m free and clear of existing debt.
AIG Global Real Estate, New York-based private equity fund of American International Group declared that it has inked an agreement for the sale of its Indian asset-management business to a Canada-based fund manager Brookfield Asset Management.