what happened to my aig stock

What happened to AIG Financial Products?

High-Flying AIG For decades, AIG was a global powerhouse in the business of selling insurance. But in September 2008, the company was on the brink of collapse. The epicenter of the crisis was at an office in London, where a division of the company called AIG Financial Products (AIGFP) nearly caused the downfall of a pillar of American capitalism.

What happens to excess shares of AIG common stock?

Under the Charter Amendment, if a prohibited transfer occurs (which is the same transfer that would cause Rights to be voided under the Plan), the transfer is voided, and any excess shares of AIG common stock in excess of the limitation are sold, with any profits going to charity.

Was AIG too big to fail?

AIG was one of the beneficiaries of the 2008 bailout of institutions that were deemed "too big to fail.". The insurance giant was among many that gambled on collateralized debt obligations and lost.

How much did AIG lose in 2019?

As of December 31, 2019, on a U.S. GAAP basis, AIG had U.S. federal net operating loss carryforwards of approximately $32.1 billion and $2.2 billion in foreign tax credits. 10. What is the record date?

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What happened AIG?

In late 2008, the federal government bailed out AIG for $180 billion, and technically assumed control, because many believed its failure would endanger the financial integrity of other major firms that were its trading partners--Goldman Sachs, Morgan Stanley, Bank of America and Merrill Lynch, as well as dozens of ...

Is AIG in financial trouble?

You may be surprised to learn that the American International Group Inc., better known as AIG (NYSE: AIG), is still alive and kicking, and is no longer considered a threat to the financial stability of the United States.

What happened in the AIG scandal?

The most prominent scam in the recent history of American economy was the AIG Accounting Scandal of 2005. The AIG was found guilty of entering into sham transactions in order to inflate the reserves and to conceal losses. It was also found guilty of misled the Insurance Department about offshore affiliates of AIG.

Did the government take over AIG?

The U.S. government seized control of American International Group Inc. AIG -3.37% -- one of the world's biggest insurers -- in an $85 billion deal that signaled the intensity of its concerns about the danger a collapse could pose to the financial system.

What caused the collapse of AIG?

AIG's swaps on subprime mortgages pushed the otherwise profitable company to the brink of bankruptcy. As the mortgages tied to the swaps defaulted, AIG was forced to raise millions in capital. As stockholders got wind of the situation, they sold their shares, making it even more difficult for AIG to cover the swaps.

What caused the downfall of AIG?

The company's credit default swaps are generally cited as playing a major role in the collapse, losing AIG $30 billion. But they were not the only culprit. Securities lending, a less-discussed facet of the business, lost AIG $21 billion and bears a large part of the blame, the authors concluded.

Who owns AIG now?

As part of the restructuring, the A.I.G. trust that formally held the insurer's shares on behalf of the government will be dissolved. Instead, the Treasury Department will obtain direct ownership of 1.655 billion A.I.G. shares, giving it 92.1 percent of the outstanding common stock.

Is AIG a Valic?

With this name, AIG Retirement Services, we are more closely aligning with and leveraging the strength, scale and brand of our parent, AIG – a recognized Fortune Global 500 leader with deep experience in retirement and financial services.

How much was AIG stock 2008?

Biggest 1-day $ gain was on 9/19/2008 when it rose $23.2/share or 43.1% to settle at $77.

Did AIG get bailed out?

On Sept. 16, the Federal Reserve deemed AIG systemically important to the global financial system and provided the company with an $85 billion two-year loan in exchange for a 79.9% equity stake in the company. In November, the Fed restructured its AIG bailout and reduced the size of the total loan to $60 billion.

What would happen if AIG failed?

If AIG failed, it would trigger a domino effect globally as the insurance giant had provided protections worth more than half a trillion dollars, including $300 billion to banks in the U.S. and in Europe. “Imagine if AIG went away. All of these banks would have had enormous regulatory capital problems.

Why was AIG bailed out and not Lehman?

Bernanke said the Fed rescued AIG because officials believed the firm's problems were isolated in its financial products business, which wrote hundreds of billions of dollars in derivatives bets without holding enough capital to pay out when the bets lost.

What is American International Group?

What is the general insurance segment?

engages in the provision of a range of property casualty insurance, life insurance, retirement products, and other financial services to commercial and individual customers. It operates through the following segments: General Insurance, Life and Retirement and Other Operations.

What was the AIG crisis?

The General Insurance segment consists of insurance businesses in North America and International business areas. The Life and Retirement segment includes Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets. The Other Operations segment covers income from assets held by the company and other corporate subsidiaries.

How much did AIGFP lose?

For decades, AIG was a global powerhouse in the business of selling insurance. But in September 2008, the company was on the brink of collapse. The epicenter of the crisis was at an office in London, where a division of the company called AIG Financial Products (AIGFP) nearly caused the downfall of a pillar of American capitalism.

How much was AIG bailout worth?

The AIGFP division ended up incurring about $25 billion in losses. Accounting issues within the division worsened the losses. This, in turn, lowered AIG's credit rating, forcing the firm to post collateral for its bondholders. That made the company's financial situation even worse.

What is AIGFP insurance?

Almost a decade after it was handed a government bailout worth about $150 billion, the U.S. Financial Stability Oversight Council (FSOC) voted to remove AIG from its list of institutions that are systemic risks, or in headline terms, "too big to fail.".

How much did the government make on the AIG bailout?

The AIGFP division sold insurance against investment losses. A typical policy might insure an investor against interest rate changes or some other event that would have an adverse impact on the investment. But in the late 1990s, the AIGFP discovered a new way to make money.

Was AIG too big to fail?

In fact, the government made a reported $22.7 billion in interest on the deal.

Did AIG cut its revenue?

Simply put, AIG was considered too big to fail. A huge number of mutual funds, pension funds, and hedge funds invested in AIG or were insured by it, or both. In particular, investment banks that held CDOs insured by AIG were at risk of losing billions.

How many splits does AIG have?

In quarterly earnings announced in August 2019, AIG posted a nearly 18% increase in revenue, and the company's turnaround was deemed to be well underway. But it had been forced to cut itself in half, including selling off a valuable Asia unit, in order to repay its massive debt to U.S. taxpayers.

Why does American International Group reverse share split?

American International Group (AIG) has 9 splits in our AIG split history database. The first split for AIG took place on November 18, 1986. This was a 2 for 1 split, meaning for each share of AIG owned pre-split, the shareholder now owned 2 shares.

What happens when a company reverses its split?

When a company such as American International Group conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like.

What is American International Group?

So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Does a lower price stock increase market capitalization?

American International Group is a holding company. Through its subsidiaries, Co. provides a range of property casualty insurance, life insurance, retirement solutions, and other financial services. Co.'s businesses include General Insurance, which provides insurance products and services for commercial and personal insurance customers;