On the History of AIG
According to Wikipedia, the American International Group, Inc. (NYSE: AIG) or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in La Défense, Paris, and its Asian headquarters office is in Hong Kong.
According to the 2011 Forbes Global 2000 list, AIG was the 29th-largest public company in the world. It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22nd, 2008.
AIG suffered from a liquidity crisis when its credit ratings were downgraded below “AA” levels in September 2008. The United States Federal Reserve Bank on September 16, 2008 created an $85 billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79.9% of the equity of AIG.
###
Assessment
The Federal Reserve Bank and the United States Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70 billion, a $60 billion credit line and $52.5 billion to buy mortgage-based assets owned or guaranteed by AIG, increasing the total amount available to as much as $182.5 billion.
AIG subsequently sold a number of its subsidiaries and other assets to pay down loans received, and continues to seek buyers of its assets.
Many physician investors were affected.
Source: www.CreditLoan.com
Conclusion
And so, your thoughts and comments on this ME-P are appreciated. Please review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.
Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
Our Other Print Books and Related Information Sources:
Health Dictionary Series: http://www.springerpub.com/Search/marcinko
Practice Management: http://www.springerpub.com/product/9780826105752
Physician Financial Planning: http://www.jbpub.com/catalog/0763745790
Medical Risk Management: http://www.jbpub.com/catalog/9780763733421
Healthcare Organizations: www.HealthcareFinancials.com
Physician Advisors: www.CertifiedMedicalPlanner.com
Subscribe Now: Did you like this Medical Executive-Post, or find it helpful, interesting and informative? Want to get the latest ME-Ps delivered to your email box each morning? Just subscribe using the link below. You can unsubscribe at any time. Security is assured.
Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos
Sponsors Welcomed: And, credible sponsors and like-minded advertisers are always welcomed.
Link: https://healthcarefinancials.wordpress.com/2007/11/11/advertise
Filed under: Ethics, Insurance Matters, Risk Management | Tagged: A Visual Guide to Pissing Off The Financial World, AIG, American International Group, bailout, insurance collapse, United States Federal Reserve Bank |
Mad as Hell
Many physican investors, the lay public, mutual and index funds, retirement account holders and private equity firms were hurt by this insurance company … including me!
No thanks … for the reminder.
Dr. Mad as Hell
LikeLike
Physicians and Risks
Physicians are wise to protect themselves from the two biggest risks they have: loss of life and loss of income due to inability to work. This doesn’t mean that insurance should be the cornerstone of your financial plan either, and I would advocate lower cost structure insurance (term vs. whole/variable/universal) in most cases regarding life insurance. But, a physician needs to be able to depend on their Disability Income provider and know that the insurance company will be there to pay the claims if/when they need it.
AMA (there are still some doctors that are members!) promotes heavily to med students and docs their affiliation Disability Income policy which is offered by The United States Life Insurance Company in the City of New York. AIG like many large Insurance companies have subsidiary insurance companies. Yes, US Life is a sub of AIG. If AIG had not received $40 billion in tarp money in 2008 thousands of physicians would have their DI policies in jeopardy. Loss of your DI Insurer means you must qualify under another policy, which may not have been possible for those physicians that had health issues occur after they purchased the AMA policy.
Now, lest I am accused of fear mongering, AIG states on their website, under the “Restructuring” tab:
“Given the number of variables involved, it is difficult to quantify the magnitude of the systemic risk that would have occurred if AIG had failed. However, it is clear that an AIG collapse and the consequent impact on its thousands of counterparties and customers would have jeopardized the stability of the global economy. “
AMA still uses US Life for their physician DI policies. Physicians should be aware DI insurance is much more complicated than Life insurance (Life insurance: Dead=payout of benefit to beneficiary). Features and ratings vary greatly between DI policies and a physician would be wise to work with a fiduciary advisor (not compensated by sales commission) in selecting the best policy.
David K. Luke, MIM
[Physician Financial Advisor – Fee-Only]
Certified Medical Planner™ candidate
http://www.CertifiedMedicalPlanner.org
LikeLike