American International Group controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2009
Executive bonus controversy
AIG’s announcement of large bonuses for executives and Financial Products employees while the company was receiving government support generated widespread political and public criticism.
2008
Credit-default-swap and risk-management failure
AIG’s Financial Products division sold extensive unhedged credit protection on mortgage-related securities. Falling asset values generated collateral demands and losses that produced a liquidity crisis and led to the government rescue. The Financial Crisis Inquiry Commission criticized the company’s risk management and governance.
2005
Accounting and regulatory investigations
AIG faced investigations by the Securities and Exchange Commission, the U.S. Justice Department, and the New York attorney general concerning accounting practices and insurance transactions. Maurice Greenberg left the company, earlier financial statements were restated, and the company reached a settlement reported at approximately $1.6 billion with New York authorities.