american international group inc

4
American International Group Inc. SCANDAL (2005)

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Page 1: American International Group Inc

American International Group Inc. SCAND

AL (2005)

Page 2: American International Group Inc

World’s largest insurance and financial services company 65,000 employees Business in 130 countriesPresident & CEO - Peter HancockShareholder’s equity (2014): $107.3 billion Net Income 2014: $7.52 billion

AIG Overview

Page 3: American International Group Inc

There was a massive accounting fraud, leading to roughly 3.9 billion, along with stock price manipulation.

Recorded loans as revenue Ex: 500M loan from Gen Re

Hide loss in financial statement Didn’t record deferred acquisition cost

in timely manner

What Happened?

Page 4: American International Group Inc

Who was involved?

HANK GREENBURG

CEO of AIG 1968-2005

Participation on f