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• American International Group (AIG) is one of the world's largest insurance and financial services firms, with operations in more than 130 countries.

  On May 21, 2009, AIG chairman and CEO, Edward Liddy, announced that he would step down as soon as the company's board of directors finds a replacement. Liddy was appointed by the Federal Reserve in September 2008 but was criticized for allowing the company to receive $182 billion as part of a government bailout and then paying out $165 million in bonuses to AIG financial products division executives.CNN Money: AIG's Liddy to Step Down (May 21, 2009)

• Fast Facts

  1. Stock symbol: AIG (NYSE)
  2. Annual revenue (2007): $110 billionYahoo! Finance: American International Group, Co. (AIG) Income Statement
  3. Founder: Cornelius Vander Starr
  4. Year established: 1919
  5. Industry: Finance and insurance
  6. Phone: (212) 770-7000
  7. Toll free phone: (877) 638-4244
  8. Fax: (212) 509-9705
  9. HQ: New York, NY
  10. May 21, 2009: Edward Liddy announced he will be stepping downCNN Money: AIG's Liddy to Step Down (May 21, 2009)
  11. Liddy recommended the roles of CEO and chairman should be separatedCNN Money: AIG's Liddy to Step Down (May 21, 2009)
  12. September 2008: Federal Reserve appointed Edward Liddy as Chairman/CEOCNN Money: AIG's Liddy to Step Down (May 21, 2009)
  13. Former Chairman: Bob Willumstad
  14. Staff (2007): 116,000

• Improvement

  In May 2009, the company reported a $4.4 billion loss during the latest quarter, its sixth quarterly loss in a row. However, the news was greeted with some optimism, as it represented a marked improvement over the previous quarter's $61.7 billion loss and a long-term improvement over the $7.8 billion loss of a year earlier.CNN Money: AIG loss narrows by 44% (May 7, 2009)

• AIG Bonuses Controversy

  On March 13, 2009, AIG paid out $165 million in corporate bonuses that they said they were "contractually obligated" to pay out. Some of the bonuses were paid out to employees or former employees of AIG Financial Products, a division which has been blamed for the company's financial crisis in 2008. 73 employees of the division have received over $1 million each in bonuses.CNN Money: 73 At AIG Received Bonuses Of $1 Million Or More (March 17, 2009)

  Several politicians have expressed concern; Timothy Geithner said the payments would be "unacceptable" and Barney Frank said the bonuses were "rewarding incompetence" and are going to "people who screwed this thing up enormously."FOXNews.com: Lawmakers Target AIG Over Executive Bonuses (March 16, 2009) President Barack Obama called the decision "an outrage" and said his administration would try to block the bonuses.Fox News: Obama Says Administration Will Try to Block AIG Bonuses (March 16, 2009) Senator Chuck Grassley said the company's executives should "resign or go commit suicide."New York Times: A.I.G. Bonuses Strike a Nerve Like Few Other Topics (March 17, 2009) In a letter to lawmakers on March 17, 2009, Treasury Secretary Timothy Geithner said that the government will require that AIG pay an amount equal to the bonuses to the Treasury Department. Geithner said that the government also will deduct the amount from the $30 billion AIG was awarded in a federal loan in March.Bloomberg: Geithner Vows to Recoup AIG Bonuses as Lawmakers Express Fury (March 18, 2009)

  In his testimony to the House Financial Services Committee on March 18, 2009. CEO Edward Liddy, who took office after the contracts were written, said that he had asked most employees who received bonuses to pay back half of the money or more. Liddy also said that it was unlikely that the company would ask for more federal loans. Liddy said he was reluctant to name the people who were given bonuses because the company had received death threats against them.Marketwatch: AIG CEO, some staff get death threats over bonuses (March 18, 2009)

  On March 19, 2009, The U.S. House of Representatives voted to approve a 90 percent tax on AIG employee bonuses at American International Group Inc. and at other companies which are recipients of at least $5 billion in taxpayer bailout funds. The decision needs approval in the U.S. Senate.Bloomberg: U.S. House Passes 90 Percent Tax on Employee Bonuses (March 19, 2009)

• Resignation Letter

  On March 24, 2009, Jake DeSantis, an executive vice president in the financial products division of AIG, resigned. His resignation letter was published in The New York Times. In the letter, DeSantis said that he and others in the division had been unfairly blamed for the "credit default swap transactions" at AIG and that those responsible had left the company. He also said he believed it was unfair of CEO Edward Liddy to ask for employees to return their bonuses and that he would donate the remaining money after taxes from his retention bonus to "organizations that are helping people who are suffering from the global downturn".The New York Times: Dear A.I.G., I quit! (March 24, 2009)

• Security Memo

  On March 19, 2009, the blog Gawker published a security memo it said detailed safety recommendations for AIG employees. The memo was dated March 18, 2009. The recommendations included avoiding wearing apparel with AIG logos, to report suspicious people and to travel in pairs at night if possible.Gawker: AIG Corporate Security's Tips for Surviving an Angry Mob (March 19, 2009)

• AIG in the UK

  On February 12, 2009, the Serious Fraud Office announced that they had launched an inquiry into the U.K.'s operations of AIG. On the same day, AIG said, in a statement, "As previously disclosed, AIG began the process of unwinding certain of AIGFP's and its subsidiaries' businesses and portfolios, including those in the United Kingdom, late last year." AIG said they would fully cooperate with the investigation.Times Online: SFO to probe AIG's UK financial business (February 12, 2009)

• AIG Bailout

  In September 2008, it was reported that AIG did not have the liquid assets to afford a credit downgrade, and might need to sell off assets or potentially file for bankruptcy.Wall Street Journal: AIG Scrambles to Raise Cash, Talks to Fed (September 15, 2008) MarketWatch: AIG slumps; insurer reportedly seeks Fed support (September 15, 2008) On September 16, 2008, the Federal Reserve responded with an $85 billion loan in exchange for an 80% stake in AIG. The New York Times: Fed to Give AIG $85B Loan and Take 80% Stake (September 16, 2008) The rescue package was increased to $150 billion after AIG posted a third-quarter 2008 loss of $24.5 billion.ABC News: AIG in Talks With U.S. Government, Sees $60 Billion Loss... (February 24, 2009) AIG was funded with an additional $30 billion in federal money, on March 2, 2009, to help cope with the record loss of $61.7 billion that was reported in the final quarter of 2008.Los Angeles Times: Feds give AIG $30 billion more (March 2, 2009)

• Key Dates

  1. 1919: Cornelius Vander Starr founds insurance company in Shanghai, China
  2. 1962: After expanding across the globe, Maurice R. Greenberg takes over United States business
  3. 1969: AIG goes public
  4. 2005: Greenberg resigns as CEO
  5. 2006: AIG becomes sponsor of Manchester United team in the United Kingdom

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