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American International Group (AIG) stood at the centre of the financial crisis of 2008. It was one
of the main institutions issuing credit default swaps. With default rates increasing and the
economic climate worsening, it found itself in liquidity problems. AIG was forced to seek a
government rescue and was effectively nationalised. Shortly after the bailout in 2009, it also
become the centre of a media firestorm in the so-called AIG bonus payments controversy.
Questions:
Critically evaluate the factors leading to AIGs liquidity problems, bailout, and nationalisation.
Critically assess the reasons and judgment behind the AIG bonus payments controversy.
Write a short essay imagining what would have happened if AIG hadnt been saved.

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