The AIG Scandals - A Simple Overview
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Күн бұрынAIG has been responsible for some of the biggest, most damaging scandals in American history. This video gives a simple overview of these scandals and how they affected the world around them.
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Company Declines:
Kmart: • The Decline of Kmart.....
Blockbuster: • The Decline of Blockbu...
RadioShack: • The Decline of RadioSh...
Solo Cups: • The Decline of Solo......
Toys "R" Us: • The Decline of Toys R ...
hhgregg: • The Decline of hhgregg...
Pan Am: • The Decline of Pan Am....
ESPN: • The Decline of ESPN......
Gibson: • The Decline of Gibson....
iHeartMedia: • The Decline of iHeartM...
Bon-Ton: • The Decline of Bon-Ton...
Kodak: • The Decline of Kodak.....
General Electric: • The Decline of General...
Woolworth: • The Decline of Woolwor...
Dell: • The Decline of Dell......
Sears: • The Decline of Sears.....
Payless: • The Decline of Payless...
Hostess: • The Decline of Hostess...
Redbox: • The Decline of Redbox....
Nokia: • The Decline of Nokia.....
JCPenney: • The Decline of JCPenne...
Quiznos: • The Decline of Quiznos...
GameStop: • The Decline of GameSto...
NASCAR: • The Decline of NASCAR....
Shopko: • The Decline of Shopko....
MoviePass: • The Decline of MoviePa...
Reebok: • The Decline of Reebok....
The Gap: • The Decline of The Gap...
Pier 1 Imports: • The Decline of Pier 1 ...
Sbarro: • The Decline of Sbarro....
AOL: • The Decline of AOL...W...
Long John Silver's: • The Decline of Long Jo...
Chuck E. Cheese's: • The Decline of Chuck E...
GNC: • The Decline of GNC...W...
Hertz: • The Decline of Hertz.....
Steak 'n Shake: • The Decline of Steak '...
CiCi's Pizza: • The Decline of CiCi's ...
Boston Market: • The Decline of Boston ...
Yahoo: • The Decline of Yahoo!....
Montgomery Ward: • The Decline of Montgom...
Fry's Electronics: • The Decline of Fry's E...
Souplantation: • The Decline of Souplan...
Gateway: • The Decline of Gateway...
BlackBerry: • The Decline of BlackBe...
Sports Authority: • The Decline of Sports ...
Atari: • The Decline of Atari.....
KB Toys: • The Decline of KB Toys...
Pizza Hut: • The Decline of Pizza H...
MGM: • The Decline of MGM...W...
FYE: • The Decline of FYE...W...
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@RecursionX 2 жыл бұрын
Glad to see you are more critical of AIG than most scandals. The very height of corruption, the ability to drive the world into a deep financial depression.
@thatguyalex2835 2 жыл бұрын
I remember back in 2009, on the back of Nat Geo magazines, seeing the large AIG logo advert. Shame that this insurance company was greedy. Also, the same could be said for Nat Geo itself, when it got bought out by Fox in 2015, and the quality of the magazine fell in 2016-18 (ahem, got filled with politics and ads). :(
@DontRespectTheUS 2 жыл бұрын
@@thatguyalex2835 Thars the way it goes unfortunately. The US seems to tell people that greed is a right, and is the best way to measure worth.
@thatguyalex2835 2 жыл бұрын
@@DontRespectTheUS Yeah, but why does it seem like greed has become more prevalent over the last decade or so? Technology and power have caused a disparity (gap) amongst the richest and poorest folks. Amazon, Fox, Facebook and Tesla all are run by billionaires. 50 years ago, the number of billionaires, adjusted for inflation was way less than today. The Gini index has also changed somewhat.
@DontRespectTheUS 2 жыл бұрын
@@thatguyalex2835 Because, put plainly, greed has become much, MUCH more prevalent, as entertainment has become the national focus. I mean the US is 16th in intelligence and 70% are not FINE with that because they’ve moved into this new “nu-uh” echo chamber where NOTHING is true unless it’s flattering. When you say “the US is 16th in education” the average American thinks “that can’t be true because me and my friends are the smartest people in history”. And they think that because they’re surrounded with different ways to say “I’m all that matters” that everything is subjective to them. So someone who doesn’t know the US was once a British colony, that France helped the US against the British, or one of the 20% who think the Earth is flat can just sit back and say “nu uh”. Or “Oh yea well you think…”. I remember as a kid the simpleton adults would say no matter what “you think everything created itself” if you didn’t agree with their personal view of “creationism”. Now replace that with “you think men and women are the exact same”. We don’t but they can say that to dismiss the facts of a matter and make it seem like any disagreement is personal. That’s literally one of the only things you hear coming from the US AT ALL! Entertainment, emotion, hedonism, escapism, entitlement to fantasy. It all goes to enforce the worst of human behavior ADMITTEDLY for an emotional reason.
@thatguyalex2835 2 жыл бұрын
@@DontRespectTheUS Well, directly in to the creationism, I am a Christian, but I believe in the Big Bang and evolution. God said "let there be light", which is the cosmic microwave background radiation from the Big Bang. But it is sad that a large proportion of Americans can be brainwashed into flat Earth thinking, and antivaxxers exist.
@jonr269 2 жыл бұрын
I remember when the news got ahold of the fact that AIG gave all there exe’s those huge bonuses from the bailout they received like many other companies were doing as well when the government started bailing all these big businesses out. Many of these people should have been charged or forced to give the money back to just let them belly up.
@jabber1990 2 жыл бұрын
which is weird, because that happened in 2020 too, yet somehow the American people were ok with it then
@poeticsilence047 2 жыл бұрын
@@jabber1990 yeah super weird. If people end up only staying because you gave them a fat bonuses maybes they never believed in your company.
@jabber1990 2 жыл бұрын
@@poeticsilence047 at my current place of employment people only stay because the company bribed new people to stay with financial incentives, which is weird considering how often our checks are late
@poeticsilence047 2 жыл бұрын
@@jabber1990 I think most companies did that. It's amazing if most companies just overall did things better not just pay but how and what they offered to employees they would have not need to do that in the first place. Employees are what keep the engine running not executives.
@jabber1990 2 жыл бұрын
@@poeticsilence047 um, no. Customers keep the business running Secondly, companies only did that to cover their asses to lie about all the fancy equipment that they bought
@TiA003 2 жыл бұрын
Can you do your fad series again . I would love for you to talk about hoverboards and other toys that went out of style and were one hit wonders
@hydrolisk6454 2 жыл бұрын
Heelys
@maximos905 2 жыл бұрын
Whatever happened to segways
@Arcademan09 2 жыл бұрын
Remember VideoNow? Or those "click it" keychain cubes that played music?
@TiA003 2 жыл бұрын
@@hydrolisk6454 yes I always wanted a pair of heelys but my grandma stopped me from getting them because of all the accident stories . I heard they're trying to make a comeback
@rossjohnstone4689 2 жыл бұрын
Tamagatchi's :3
@None0fYourBusiness 2 жыл бұрын
The problem in this country is these high powered executives don’t end up in prison. I don’t mean the random low level grunt doing 18 months in a country club, I mean CEOs, Presidents and VP’s doing time in maximum security state prisons next to murderers with life sentences.
@quintessences 2 жыл бұрын
we also need to have a country that’s abandoned capitalism, and the two party system
@danfontaine8179 2 жыл бұрын
But they aren’t a danger to society /s
@HaakonHawk 2 жыл бұрын
I don't disagree with the idea that corrupt CEO's and VP's should face prison sentences for doing corrupt shit. But saying they should do time in maximum security prisons completely misses the point of maximum security prisons. Those are built to house (as you've acknowledged) dangerous individuals like murderers. They're not there to serve the worst possible punishment, they're there to keep dangerous people from escaping by any means possible. If they escape, they might go out and murder someone else. What is a high-powered CEO gonna do if they escape? Go out and cause another mortgage crisis? They have no motivation to escape in the first place, and there's no harm they can do if they do escape. So you don't need maximum security for them. The risk just isn't there to justify the means.
@None0fYourBusiness 2 жыл бұрын
@@HaakonHawk The purpose of punishment is also punitive, and I can’t think of many legal consequences that would be worse than putting a white collar shyster in with the worst offenders. The fact is these business executive types often cause the most harm in our society, and should be punished accordingly as both a measure to punish illegal behavior but also as a deterrent for others who see that the consequences far outweigh the potential rewards. When you throw a mid level executive into a country club prison that has a tennis court, what message are you sending someone who may be thinking of committing the same crime? No, they need to be treated exactly the same as we’d treat anyone else who was convicted of larceny, fraud, theft and grifting. These are often violent crimes with real consequences for the victims and committing the crimes on a massive scale instead of simply stealing money out of a cash register shouldn’t give you an immunity to being harshly punished. We live in a country wherein a person could get a life sentence in a maximum security prison for 3 separate counts of felony fraud while another person gets an 8 month suspended sentence for tens of thousands of separate counts of felony fraud. I feel like you’re trying to be pedantic and argue about exact wording as a way to keep the country stuck in place instead of recognizing the utility in what I’m suggesting. How very cuckservative of you. Don’t bother replying, I’m done speaking to trolls.
@tomhart6568 2 жыл бұрын
AMEN!
@elcheapo5302 2 жыл бұрын
"Too big to fail" is a scam. The world will go on with one less shady company just fine.
@catdogmousecheese 2 жыл бұрын
Congressman: "Couldn't agree more; we can't bailout these companies with taxpayer dollars." *lobbyist hands congressman a check for their reelection campaign* Congressman: "Like I said, these companies are vital to our economy and we must bail them out."
@vinyllpreviews9462 2 жыл бұрын
Instead of bailing out the companies that created this mess, they could of just paid off those people home loan for them. But hey, little guy never gets a break.
@trunkage 2 жыл бұрын
They might be to big to fail. But if they get into these crazy positions, using tax payers money, just nationalize it until more suitable investors come along and the market is stabilized. Ban any previous execs from ever being involved
@JPMonteith 2 жыл бұрын
AIG failing would have resulted in a chain reaction of hundreds of other companies going under because of how they were connected financially. That is why the feds "had to" bail them out. But, I do wish there was some method in place to keep companies (primarily financial ones) from getting too big.
@KasumiKenshirou 2 жыл бұрын
If a company gets "too big to fail", they should be broken up if the government has to bail them out.
@raymondwest1973 2 жыл бұрын
I Hate AIG! My mother had much of her retirement invested through AIG. She lost most of it. What adds insult to injury is that my cousin was her financial advisor.
@Arcademan09 2 жыл бұрын
Did your cousin get scammed too or was he in on it? Either way that sucks, sorry that happened
@gunreal8153 2 жыл бұрын
Chances are your cousin had no idea. Not even the banks did. You should read up more on what led up to 2008 or if you want a fun way to do it watch the big short
@michaelvick2872 Жыл бұрын
@@gunreal8153 oh no the banks knew what they were doing was wrong. They purposefully gave out bad loans.
@Markimark151 2 жыл бұрын
AIG did a so many bad loans that they not only bankrupt themselves, but also hurt retailers who AIG invested it! Also do a video on the decline of Rite Aid, that drugstore chain has been closing down some locations lately!
@Markimark151 2 жыл бұрын
@@MentokTheMindtkr they’re the most declining retailer that’s has been on life support for over a decade! I used to have a Rite Aid in my town until 2012, they’re like Woolworth’s which are very outdated!
@gunreal8153 2 жыл бұрын
@@Markimark151 huh? They’ve done nothing but expand in Michigan from what I’ve seen
@Markimark151 2 жыл бұрын
@@gunreal8153 AIG or Rite Aid?
@Strigon07 2 жыл бұрын
I had a rite aid just close this year.
@crithitjace 2 жыл бұрын
Rite Aid sold a large chunk of their locations to Walgreens. Depending on how profitable they are and how close they are to another Walgreens they either close the store, or converted it.
@sactocapo 2 жыл бұрын
This should have been part of your “Why theyre hated” series
@clarencechoonoo6323 2 жыл бұрын
I do not have a problem with the government bailing out AIG to save us further hurt in 2008. But I would have liked to have seen their executives and other executives face jail time over the pain they caused to people all over the world. Maybe you can do a major 3-5 part video series on all the major players in the 2008 financial crisis.
@sabrina.natalie 2 жыл бұрын
OoOoOo… that’s a wonderful idea. I would love that! 💕
@TheDucatiPilot 2 жыл бұрын
AIG was also Manchester United's kit sponser a few years ago.
@CarlosRodriguez-eg1ic 2 жыл бұрын
Government. They allowed for recklessness. I wouldn’t have bailed them out and actually prosecuted the management involved.
@jeast417 2 жыл бұрын
The government is usually the problem but too many are blind to that fact
@grandfire 2 жыл бұрын
Big businesses convinced us the biggest sign of a healthy economy was a flourishing stock market. So when they get caught lying, cheating, or being reckless, politicians will trip over themselves to bail those businesses out, lest they be the ones blamed for a stock market collapse. Government will always act in its own self-interest just like the businesses will.
@trunkage 2 жыл бұрын
So... we want the government to nanny everyone to make sure they dont do naughty things?
@CarlosRodriguez-eg1ic 2 жыл бұрын
@@trunkage the government enabled the behavior through policies…
@trunkage 2 жыл бұрын
@Beaverish Buck Teeth when has 'punishing' a rich person ever caused them any harm? Punishment is just the bribe they need to pay to do business
@TheWedabest 2 жыл бұрын
It never ceases to amaze me how the American economic and financial system are a giant house of cards!
@manickn6819 2 жыл бұрын
That relies on them having the international currency. Something that they have weaponised and will slowly loose as victims migrate to a more stable environment.
@Nakuke3 2 жыл бұрын
Reported for anti semitism
@johnnyblaze9217 2 жыл бұрын
American? You know jackshit about economics if you think this is an american thing the entire world economy is a house of cards goofy
@palaceofwisdom9448 2 жыл бұрын
The fact that the man primarily responsible was allowed to buy his way out of going to prison says all you need to know about how such a thing could happen.
@haydenbsiegel Жыл бұрын
I worked in Finance when AIG went through this and our surpime mortgages were all going into collections. It was brutal. When I lost my DL due to not having my insurance card in the car. I distinctly remember thinking 'ain't that a bitch' as an Insurance Company was "too big to fail" and getting off while I was getting screwed by some highway bandits with badges at some speed trap in no where Texas for forgetting to have papers in the vehicle. Life goes on though.
@Emet.V 2 жыл бұрын
AIG payed back all the bailout money. I don’t know how many companies can say that.
@ALewis-wv5rj 2 жыл бұрын
At the expense of workers. I worked at AIG for 6 years. And they had massive layoffs just before our bonus payout every single year I was there. I watched majority of my coworkers with 15, 20, 25 years be let go. Until at last, in my 6 th year they let go of the entire IT infrastructure dept (1,000+ people) which included myself, my boss, and damn near everyone else I knew. Kept 500 offshore employees and converted them to Accenture. Their employees suffered greatly while they paid back and divested companies to fix the problem they essentially caused.
@baddoomguy1986 2 жыл бұрын
@@ALewis-wv5rj Really surprised this didn't come up in the video! I know somebody with a bunch of AIG promo coasters, who was also laid off.
@JJfan48 2 жыл бұрын
Always love seeing your videos pop up
@lamellelochness2170 2 жыл бұрын
The decline of Rite Aid would be surprisingly interesting I think. At one time many thought they were going to surpass both Walgreens and CVS, and indeed their stock price was higher than both. The they had what was, at the time, the biggest corporate accounting scandals in our nations history. It is a fascinating story.
@SombreroGato 2 жыл бұрын
yep and they ate up alot of smaller regional pharmacies along the way had they been left alone would probably be bigger than the remnats of rite aid now. in my area it was Revco, then Eckards bought them, then finally rite aid bought them.
@DaveKeyes73 2 жыл бұрын
Back before I retired, I was a programmer who wrote numerous programs to read data from a customer and convert it to our format to store in a reporting database. A couple of companies, CV Starr and Ironshore were insurance startups from executives who left AIG during this fall out. Watching your video taught me what the CV stood for. They do some "fancy" accounting tricks to bring their quarterly numbers up. Some get caught, you all remember the ENRON failure, they too did the "fancy" accounting tricks to cook their books.
@sabrina.natalie 2 жыл бұрын
Oh cool. Random question. What programming language is your favorite to use? I like C# ☺️
@channaryblue7060 10 ай бұрын
Chubb still pulls this and somehow it flies every quarter
@Ozisl 2 жыл бұрын
"Not operating in the most responsible way" is the most absolutely kind way of phrasing that.
@AmIWhoIThinkIAm 2 жыл бұрын
AIG bought ancient "The Hartford Steam Boiler Inspection and Insurance Company" and then sold it to a company in Germany. My grandfather and father both worked there.
@racooninvasion 2 жыл бұрын
I lived across the street from the AIG Houston building back then, I remember watching Federal agents walking out and loading pallets with documents. Two months later the sign was being pulled down. The good ol days...
@FaithFacts 2 жыл бұрын
You've done it again Company man. Another great video!
@Kazuma_Drake 2 жыл бұрын
Something to look foward to in the week a Company man video
@elliot7761 Жыл бұрын
Company Man, your analogies are great and I thank you for the great quality videos. I always learn a lot. Subscriber for life.
@moneysins 2 жыл бұрын
AIG had loads of great people doing great things, but a handful of greedy bastards from the financial products division sunk the whole ship
@witness1013 2 жыл бұрын
Great things ? Lool...
@moneysins 2 жыл бұрын
@@witness1013 A lot of the insurances they wrote were critical to society, for example insuring injured workers can get paid, insuring elderly people can pay the cost of the care they need, etc
@d.r.strangelove6004 2 жыл бұрын
It wasn't just greedy bastards at AIG-FP who did it. It was a leadership and a corporate culture that said "GAAP net income is the only measure we care about".
@patchesconway5957 2 жыл бұрын
It still has A possibly, yet hurry, & let us say better late than never.
@nma851 2 жыл бұрын
I really just want to thank you for what you do. Your approach and honesty are evident and you put as little of your personal opinions into the commentary. If you do, you disclaim such. Thats what makes you stand out and why I watch your channel. You’re a good guy, you don’t bullshit, you say it like it is, and you present the facts in a way no other supersedes. Thats talent my friend 😉😉 Like I said I just wanted to give you a thank you and since I don’t know how to find an email on here or whatever LOL, figured I’ll roll the dice with leaving a comment on a hot topic. Have a good one and take it easy.
@MitchZro 2 жыл бұрын
Dang dude you cover these topics with such poise. Well done.
@toddyoung569 2 жыл бұрын
Life Insurance underwriter here. I used to work for AIG! Bailed in 2007 because even I could see the business wasn't matching the books. Thanks for the flash back!
@InfectedChris 2 жыл бұрын
If Hell exists, there is a certain place for all these execs and lawyers who think they are above everyone else.
@myownboss1 2 жыл бұрын
I am 54 now and work a state as a supervisor prison nurse, but when I graduated college in 1991, SunAmerica was my first job as a customer service rep. I was promoted multiple times and left the company in 1997 for ‘greener pastures’ as an accountant, so left before the AIG debacle. I have been around, owned a successful franchise business, closed another unsuccessful one, etc etc, but to this day, I tell people that the best job/company I ever worked for was SunAmerica who used be located in Westwood, CA, then moved to Century City, CA…. LOVED it there! Thanks for this video!
@MrsBees 2 жыл бұрын
As a insurance agent, ethics and public trust are 2 of the most important qualities in financial services. AIG reputation continues to hurt the industry almost a decade and a half later. It really sucks. I get questions about AIG and if my company had enough money to handle claims all the time. What they did was terrible and I hate that our government bailed them out. They should have died in that fiery crash!
@robtymec2045 2 жыл бұрын
An insurance company running a scam?! Completely unheard of!
@AlecioG 2 жыл бұрын
If you haven't already I would love to see a video on HSBC's money laundering issues
@marsgal42 2 жыл бұрын
I have an airplane insurance policy through AIG. I hope I never have to find out if it's worth the paper it's printed on. There aren't many companies who insure airplanes. Thanks to incidents like the 737 Max crashes they're all hurting financially. All policy holders get to pay for it.
@TomMcMorrow 2 жыл бұрын
I work in finance and your videos are spot on. I especially love whenever you cover the Great Recession as it's a pet project of mine to learn about.
@jasonjkruger 2 жыл бұрын
I worked in the auto division call center as this was happening. A finance tv host named Jim Cramer suggested that the public assault AIG employees if they see them in public. You can imagine what my calls were like...
@Lurch4you 2 жыл бұрын
AIG did a “ reverse stock split “ in 2008 , to help payback the government. The late Mark Haines of CNBC reaction was classic ! He bursted out laughing !
@joem3009 2 жыл бұрын
I remember the commercials “ My Parents work for AIG.” Like it was so Impressive… Not Anymore 😏
@buddyjohnston8459 2 жыл бұрын
I fell behind on my car payments about the same time as the bailout, when I complained to the representative of the global financial institution, which will remain nameless at the moment. I was informed that the reason they had to be bailed out in the first place was due to people like me that didnt pay their bills. Needless to say I let the car be repossessed a few months later, I now buy my cars with cash, or buy here pay here car lots. Lessoned learned.
@DeathwishDice 2 жыл бұрын
It wasn't people not paying bills. It was FRAUD. They love to blame the victims...
@MK-ok6yp 2 жыл бұрын
@@DeathwishDice the rep isn't entirely wrong the over lending to people who clearly can't pay was what caused the 2008 housing crash if the government didn't get involved in lending trying to make it "equal" I'm not defending AIG but it is a reasonable argument
@MrPaxio 2 жыл бұрын
so they took your car and still made a profit on it xD prob released it to someone paying higher after the crisis with more checks and less risk. the government turned a profit flipping AIG years later, so
@evilusername2 2 жыл бұрын
I mean the underwriting process of these institutions was a joke. While yes, when people stopped paying that caused the banks and all connected entities to fail and require a bailout, the lending entities should have known not to extend credit to these people. The problem is two sided, people getting access to credit that did not have the means to cover debt service, and banks not properly assessing the risk and thus not extending credit to said people.
@MK-ok6yp 2 жыл бұрын
@@evilusername2 banks did asses risk the government forced them to give loans to high risk individuals it's like what's going on with student loans rn
@moneysins 2 жыл бұрын
“If you price your insurance too low, people will swim through the arctic to take advantage of your mistake” - Warren Buffett
@wreckingopossum 2 жыл бұрын
LMAO, but source? That would be hilarious to actually hear him say that
@MrPaxio 2 жыл бұрын
@@wreckingopossum that information is military encrypted boio
@SIP123abc 2 жыл бұрын
It wasn’t the insurance pricing that caused the collapse.
@ardreambystander6988 2 жыл бұрын
A new Company Man video!? Today is gonna be a good day 😊
@gjmarks1873 2 жыл бұрын
I think a small series depicting the 2008 financial crisis and all its contributing factors and companies involved would be very well received. Especially if done by you.
@jeast417 2 жыл бұрын
I place the blame squarely on the federal government, Clinton, for changing the policies to allow for sub prime mortgages and federally backed loans. The stated reason for the changes, to use today's terms, was to be more equitable. In doing so the banks saw little risk in making loans to people that can not afford them. This is a very similar thing that is going on with student loans
@MBarberfan4life 2 жыл бұрын
It's funny when politicians and central bankers light a fire, then blame regulators.
@sandran17 2 жыл бұрын
I wouldn't let corporate get away with this shit Scot free.
@outlaw26aow61 2 жыл бұрын
Seriously? These banks love the idea that they would make 21 percent instead of 9. The banks bought these loans without even looking at the important parts! Lmfao! Every single one of them neglected their duty to their shareholders! And the average taxpayer paid for it!
@jeast417 2 жыл бұрын
@@outlaw26aow61 who allowed them to take advantage?
@SombreroGato 2 жыл бұрын
I frsee a stundent loan collapse incoming as well.
@JasonB808 2 жыл бұрын
AIG shows how big corporations can have more power than a Government, even the US Government was at its mercy.
@kittykittybangbang9367 2 жыл бұрын
It's scary
@ExPwner 2 жыл бұрын
No, that does not follow.
@FlightHours 2 жыл бұрын
My parents worked for AIG beginning shortly after college in the 1970's. They survived the crisis but lost much of their retirement savings. The irresponsible traders involved were part of a tiny department. Most of AIG's businesses were profitable, legally compliant, and provided a net good to society. Virtually nobody at the company had any idea what was going on with this nonsense. When it all went down, the employees were absolutely furious. On the plus side, they made really awesome AIG promotional umbrellas and we still have a couple for when it rains.
@johnofashdown7566 2 жыл бұрын
I worked for them in the UK for 27 years starting in 1970. Like your parents I lost a lot of my savings and my pension has lost 85% of its spending power following its decision rarely to pay any discretionary increases to my pension. Like your mum and dad we tried very hard to make the company what we thought it was only to find out what was really going on at the top. I wish everybody could’ve seen the palatial offices occupied by the group of individuals who nearly took us down. They even had their own gym. The umbrellas in the UK were pretty crap though.
@FlightHours 2 жыл бұрын
That’s a shame - the UK team could’ve made use of the good umbrellas. Also, what’s a pension? Sincerely, A Millennial
@johnofashdown7566 2 жыл бұрын
It’s supposed to pay for food after you retire. I will let you know in a couple of years if it does. It was a big selling point for joining them but sadly the people who were doing the selling didn’t read the small print.
@cesarbalbin924 2 жыл бұрын
You're forgetting to state that a AG stock went through a 24:1 reverse split so as you see the stock today approaching $55 in effect that is selling for $2.75 for what originally was selling for $120 so you can see that it is nowhere close to what it used to be.
@michaelparrish6093 2 жыл бұрын
So.. I worked for the Money Store and they sold a LOT of adjustable rate mortgages that led to the 2006 housing collapse. That'd be interesting for you to cover.
@jmanj3917 Жыл бұрын
The first, and the most important, lesson we were taught at Officer Candidate School was, "When you are in command, you are responsible for everything your unit does or fails to do, whether positive or negative." It's too bad Hang Greenberg and the rest didn't see things that way.
@Josiah_Cornett 2 жыл бұрын
Gotta say, when I saw AiG I thought you were talking about Answers in Genesis and I was so excited to see what kind of crazy scandal Ken Ham found himself in 😂
@d.r.strangelove6004 2 жыл бұрын
AIG-FP's problem wasn't simply that they had insured so many MBSs. It was that they had classified the CDSs as investments rather than as insurance. If CDSs had been treated like insurance, AIG would have held substantial reserves, which would have helped them weather the storm of claims. It would have been ugly, but they could have done it. But by having CDSs classified as investments, AIG didn't have to hold reserves. They could bank the GAAP profits straightaway. But as investments, anyone could trade those CDS; you didn't need an insurable interest in the underlying mortgages to buy the CDSs. When mortgage defaults were low, AIG cashed in heavily. But when mortgage defaults moved against AIG, speculators jumped on the opportunity to get a big payoff, which amplified AIG's problem. The other big issue is that AIG was, at the time, also a massive reinsurer in many lines of business. There wasn't an insurance company on the planet that was more than two steps removed from AIG through reinsurance treaties. If AIG had failed, all those reinsurance treaties would have unwound at once, and insurers who were ceding business to AIG would suddenly find themselves insolvent. And then anyone who was depending on reinsurance with *those* companies would find themselves strained or insolvent. That would have annihilated insurers and pension plans all over the planet.
@NormalDennis 2 жыл бұрын
Hell yeah, it's good to hear your opinion.
@hannahlamppin7477 2 жыл бұрын
What is kinda crazy is that I had a feeling AIG was not a good company. Unfortunately, my employer, which is a hospital, uses AIG for our 401ks and Roths. My previous employer used Fidelity. I loved Fidelity! Wish I could just use them but then I would not get matched by my job. 😥
@Eternity0815 Жыл бұрын
My problem with AIG started right after I reported my husband's death(the Annuitant). I am the Joint Annuitant, I am entitled to 50% of the payment as long as I live. During my first contact to AIG, the staff flatly denied withholding taxes from our annuity payments. She responded as if she had planned it ahead. Can companies steal cutomer's money in the name of Withholding IRS & State Taxes? The other day, in a letter AIG claimed that I gave them incorrect address so important documents they had sent me was returned to them. And, asking me to sign my name for making their mistake! I could not even register to have User Account because AIG system rejects my SSN and DOB. They want to keep me off from knowing the details of my annuity payments. Are they targeting seniors who lost spouses and going through grieving? Deducting 50% is First Grader's math, but so far AIG seems having struggle with basic math. Or, just trying to cheat me out. Or, both. Thank God we didn't left millions of $s in the hands of AIG.
@ZontarDow 2 жыл бұрын
I forgot AIG existed, used to see their ads all the time.
@thankthelord4536 2 жыл бұрын
I was about to buy some insurance from AIG last week. But they wanted to perform medical exams on their side. Also they wanted us to be free of DMV fines.
@rainsies 2 жыл бұрын
What’s the point of that
@anumbus 2 жыл бұрын
I don't know if I'm putting this suggestion in the wrong place but I'm a fan. I always wondered what happened to Bennigans and Chi-Chi's? Did Chilli's and Applebee's kill them off?
@ofacesig 2 жыл бұрын
I worked for AIG for 6 years in IT. I will never ever give them a dime of my money.
@rainsies 2 жыл бұрын
💯
@BAHACABangHasanCatur 2 жыл бұрын
Good job
@DVeck89 2 жыл бұрын
I worked on the tech side of AIG a few years ago. Absolute worst job of my career. Complete dumpster fire.
@patchesconway5957 2 жыл бұрын
You know why I like A.I.G. following them for years, knowing who's hands are in the Hunny pot. Senator statesman politicians doctor's corporations. Seeing how an insurance company is used against its own people when it knew better. Power to the people.
@Vivacior 2 жыл бұрын
One key fact about the housing crisis... Many of these so-called “homeowners” were anything but. Amateur investors were able to purchase home after home...banks gave them loans based on the market-value of their current properties. Buy one...sell the next at a profit...prices kept rising...more dummies jumped in to the market...buying up properties based on an increasingly false pretense of what true home buyers could actually afford. Smaller banks kept making a ton of money on closing fees, then selling the loans off to bigger banks. Rinse, wash, repeat. Also, many many of the loans were balloon mortgages....zero (or negative) interest for 2-3 years...the prevailing thought was “Buy now, sell before the interest rate balloons to 12%”. Chain reaction went down when prices surpassed the ability to pay. Dummies who owned multiple properties caused an explosion of defaults. Pathetic home buyers who didn’t understand the balloon system also got taken down...but it was the multi-purchase amateurs who defaulted on a far grander scale. Great video, as always. 👍
@counterfeitsaint7479 2 жыл бұрын
The first 15 minutes or so of the video "Line Goes Up" is a great explanation of the 2008 train wreck.
@DAatDA 2 жыл бұрын
One of the only profits the US Government has ever made is the purchase and sale of AIG stock.
@MBarberfan4life 2 жыл бұрын
I wish they would let me invest my social security in stocks!
@kevinwong6588 2 жыл бұрын
Conrail and Chrysler bailout, to add.
@GobotWars 2 жыл бұрын
May as well double dip and place this video in the "Why They're Hated" playlist as well, I'd say
@EpicGamerWinXD69 2 жыл бұрын
You know when read the video title, I'm gonna be honest, I thought it would be about "Answers In Genesis" Scandals. Technically they aren't exactly a "company" but they are sometimes. It depends weather being a private company or a "non-profit" is more, well profitable, for them. They do have quite a few scandals under their belt actually, maybe topic for a video in the future?
@OtakuSanel 2 жыл бұрын
too big to fail is too big to be allowed to exist. all these mega corps need to be broken up.
@BeeKay5150 2 жыл бұрын
Yeah, but then people cry about capitalism and socialism and government control and all that. It's a no win situation.
@eksortso 2 жыл бұрын
AIG should have failed, just like Lehman Bros. At the same time, the goverment encouraged banks to take on mortgages that they knew couldn't be repaid, and kept interest rates low to keep bad credit looking good. It's too bad that government is too big to fail.
@the_stewbear 2 жыл бұрын
Working in the medical field, I typically get a $50,000 pay increase for every 10th patient that dies. It’s really the best way to show that I’m turning things around for the better.
@orboakin8074 2 жыл бұрын
The only reason I even knew about this company was because their logo was the main one I saw on the Manchester United football player jerseys when I was a kid in Nigeria. Aside form that, I never even heard much about them until the 2000s financial crisis.
@geosco1165 2 жыл бұрын
i replayed your intro beat like 3 times bro lol
@David.Marquez 2 жыл бұрын
I genuinely wonder who committed more fraud, banking or insurance?
@DhrubajyotiRaja01 2 жыл бұрын
*The Whole Finance Industry is*
@jeast417 2 жыл бұрын
Government
@RobShootPhotos 2 жыл бұрын
I worked for American General when they got bought out and it was a messy transition. I saw the writing on the wall and found a new job. Didn't think it was going to involve fraud but around 2006 they closed up 3 out of 4 offices in the area, including the one I was at. I am very certain I would have been out of a job a couple years later if I didn't find a new job. I guess I missed out on some unemployment benefits. Lol.
@HippieGamerDude 2 жыл бұрын
I noticed you haven’t covered much on Meijer, the smaller family owned company which today now holds the title as one of the largest privately owned companies in America in Michigan Ohio Illinois Indiana and Kentucky, not as big as Walmart but definitely comparable if not better in a lot of areas where they do compete as well if you wanna find a good vs topic as well…
@senpainoticeme9675 2 жыл бұрын
Jesus Christ $85 Billion then was already mind blowing as a bail out to a company. I do not want to know what amount bailouts will be this time around.
@haruhifujioka5952 2 жыл бұрын
This video is quite possibly the angriest I have ever seen company man. Nine minutes in you can see how it seemed like he was holding himself back from just being purely pissed
@caleb-x0422 2 жыл бұрын
Love your videos, I have a suggestion for a company to do, a New England supermarket company, DeMoulas Supermarkets, it has had a rocky history and is a fascinating story and would love to see it from you, probably on the rise, downfall and rise again portion.
@mbraxt11 2 жыл бұрын
Watched assault on wall street yesterday and AIG was mentioned. Perfect timing
@regalsoundproductions255 2 жыл бұрын
Great video for what I would think would be a boring topic.
@TheBestcommentor 2 жыл бұрын
9:51 Wait, so it was actually a good investment??? This makes the entire argument of "I paid for it" completely void. It paid for itself. How have I never heard that the bailout netted $22B?
@ExPwner 2 жыл бұрын
Because the people who cover this from a negative light are not interested in following up. They never are. Props to Company Man for giving good details!
@sor3999 2 жыл бұрын
This rarely gets mentioned in the many, many videos I've watched regarding the financial crisis.
@major7up 2 жыл бұрын
How about a video on the WorldCom Scandal? That's a fascinating one that not as many folks today remember or know about anymore.
@AcornElectron 2 жыл бұрын
Ever thought about covering smaller collapses like the run on the bank with Northern Rock in the UK? It was a crazy time.
@fsor8782 2 жыл бұрын
Can you do series about economic sanctions and how they affected companies and economies? For example countries like Iran, North Korea, Cuba, Venezuela and what to expect in Russia…
@mbarker_lng 2 жыл бұрын
"...the biggest insurance company wasn't all that trustworthy" - The least surprising line I've heard in many a day.
@aandjmom1 2 жыл бұрын
Got laid off (underwriter) because of AIG. Sub prime! They made us approve loans we knew were horrible. I mean, people claiming $20k per month as a housekeeper and gardener! really greed and horrible bullying!
@jabber1990 2 жыл бұрын
so its AIG's fault for believing them?
@aandjmom1 2 жыл бұрын
@@jabber1990 Hey Japper, not sure how well versed you are in this subject, but it was SOOOOO not about believing them,- It was about GREED, seriously. Back then they had 80/20 100% loans with no need for proof of income, just get it out the door. Because mtg companies, would package them all with great applicants and resell the loan to the next guy ( all over the world). they didnt need to trust, as long as they could bundle the crap loans forward. But it all came tumbling down in 2008. Mtg reps would scream and cuss me out for denying their loans applicants. It was just greed back then.
@davewilson7255 2 жыл бұрын
@@jabber1990 You really need to educate yourself instead of making such absurd comments that defend AIG. Get out of the basement.
@jabber1990 2 жыл бұрын
@@davewilson7255 ...when did I defend AIG?
@ROE1300 2 жыл бұрын
AIG, the company everybody loves to hate, but cannot live without. As stated in the title this is a simple explanation and clearly many times AIG walked on the edge of right & wrong and sometimes tripping onto the wrong side of that line.. But to say they are fully responsible for bringing the globe to financial ruin is a bit of an overstatement. As stated in the narrative their is plenty of blame to go around from the homeowners who thought they were getting a deal too good to be true (the deals were too good to be true), to the banks offering those deals, to the firms like Lehman Bros., to AIG, and yes to the State and Federal governments whose regulators did not smell old fish. The need to find one person or company to blame for any collapse is sometimes irresistible, but never realistic. I believe at the end this video does point out the Feds were fully repaid and made a profit. Eliot Spitzer, was he the infamous “Client #9” who was forced to resign as Governor due his financial support, as a customer, to a prostitution ring. Didn’t he, as Top Cop/Attorney General, break the laws of the state while regularly using these prostitutes? As the Narrator says plenty of blame to go around. No need to change the names to protect the innocent as their are no innocent. 🤷🏻♂️
@edfig 2 жыл бұрын
I worked here and lost my job in 2008. During my time there I didn't have a lot of work and many times just sat there in my cubicle reading and one day discovered Dave Ramsey's baby steps. I paid off my credit card bills, student loans, and my car. Fast forward to today I'm on baby step 6. Thanks to AIG. 😊
@hmmph2467 2 жыл бұрын
My mom works for AIG and got attacked in a fish market because of her badge. The man was blaming her for all sorts of things and the owner of the market had to reason with him by saying that "if she was the one leading this do you really think she would be buying fish from my store?"
@CorporateSycophant 2 жыл бұрын
It'd be cool to see you do a video on the INSLAW scandal.
@adamsubora6715 2 жыл бұрын
I would love to see a video about Buc-ee's! We had never seen one before (we are not from Texas) but they are popping up all over the place and seem to always have the cheapest gas and best food, at least best gas station food.
@mentalrenttv 2 жыл бұрын
that bass in the intro go hard lol
@blainehollub7790 2 жыл бұрын
I had a universal life insurance policy with AIG that I paid on for almost 40 years. It was $100K policy. I always thought it would be good to my grave. I found out last year it was based on a life expectancy of 85. If I lived beyond 85 it went away. In fact, at age 70 the cash value began to decrease each year until 85. I cashed it out! Didn't get that much as I had taken a loan a few years ago and interest was accruing. Anyway, it was worth as much at that point as it would ever be. Just lucky I found out the death benefit was worthless after 85.
@RoundupResistance 2 жыл бұрын
This is one of my nominees for the Netflix series "Dirty Money" - and plans for a video on Dalkon Shield maker AH Robins?
@Findecommie 8 ай бұрын
Actually surprised they still exist, their ads used to be everywhere and then after '08 they just went silent I assumed they had at least rebranded. I can still remember hearing that bailout announced over the radio while riding in the family car, that was the beginning of the end of my belief in the US government and capitalism
@gavinblankenbaker5461 5 ай бұрын
They are still horrible doing a lot of shady things they tie up money and will do everything in there power to keep it
@jaymzx0 2 жыл бұрын
I would _love_ if you could come up with some mini series of sorts where you picked some great moments in finance/fraud/business history for a deep-dive into the issue/success, but presented in the layman's terms as you are known for. Great vid as always, thanks again.
@dane1382 2 жыл бұрын
they did a few other videos on it, like the HealthSouth Fraud and Wells Fargo Scandal, featured in the end cards
@KrusteyDaKlown 2 жыл бұрын
Ah yes, corporate welfare. Corporate America is the biggest recipient of welfare in this country but it’s seen as totally ok. But the moment an ordinary citizen needs welfare it becomes socialism and that citizen needs to show personal responsibility.
@jabber1990 2 жыл бұрын
I don't see you complaining about Farm Subsidies, or Oil Subsidies
@realkarfixer8208 2 жыл бұрын
@@jabber1990 Farm and Oil subsidies ARE Corporate Welfare.
@MetalSandman999 2 жыл бұрын
How much of what is called corproate welfare is like TARP, where the government straight gave them money, and how much is stuff like tax cuts and credits? Because rarely anyone complains that lower taxes is socialism.
@jabber1990 2 жыл бұрын
@@realkarfixer8208 and if you're complaining about them; i hope you enjoy paying twice as much as you do now for food and oil!
@universalperson 2 жыл бұрын
@@MetalSandman999 at some point, lower taxes don't actually help people and bloat government debt.
@Uno421tk 2 жыл бұрын
You should do a video about ADT Security. It's a very old company that has managed to stay afloat but always seems a little behind the times.
@Matheusfk3 2 жыл бұрын
Shady, depressing, misterious song through the whole video and then, suddenly, at the very end... Happy Company Man song. hahaha alway love the contrast.
@watchlover7750 Жыл бұрын
I work there, I can tell you they threat their employes as they manage business. Oh, and I get the feeling that they still trick balance
@Tazman55x 2 жыл бұрын
My dad worked for AIG. We had to see the house when this all went down because he came into work one day and the entire department was fired without warning. And of course the stock tanked. It was a fun time for sure.
@Coyotek4 2 жыл бұрын
I guess that headless chicken landed on 'Bailout' for AIG.
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