166:(DJ-AIGCI) from their offices in Greenwich, CT. At that point, the Market and Credit Risk management groups were reduced in size. The DJ-AIGCI is a leading commodity benchmark composed of 19 futures contracts on physical commodities. As of the end of June 2007, there was an estimated $ 38 billion invested in financial products that track the DJ-AIGCI on a global basis.
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that it issued and traded in earlier years. Company officials issued the swaps believing they would have to pay out few, if any, of them. But as the financial crisis worsened during early 2008, many companies began to default on their debt, forcing AIGFP to assume losses far greater than anticipated.
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From 1987 to 2004, AIGFP contributed over $ 5 billion to AIG’s pre-tax income. During that period, AIG's market capitalization increased from $ 11 billion to $ 181 billion, and its stock price increased from $ 4.50 per share to $ 62.34 per share.
190:, who was not involved with AIG FP when it made its catastrophic bets, was selected to manage the unwinding of the portfolio in October 2008, after the company had effectively failed and been taken over by the
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to extend an $ 85 billion line of credit to AIG. As a result, the
Federal Reserve was issued a stock warrant for 79.9% of the equity in AIG, effectively nationalizing the world's largest
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led to enormous losses. These losses at AIGFP division essentially bankrupted the entire AIG operation, and forced the United States government to bail out the insurer. Under CEO
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helped stimulate the development of this new asset class. AIGFP's sponsored a major study on the historical performance of
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announced the treasury's desire to break up and liquidate most of AIG. The company has since sold off many of its
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to raise the cash to repay the
Federal Reserve. AIG closed AIGFP in December 2022, and the subsidiary filed for
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started the group in 1987. AIGFP businesses specialize interest rate and currency swaps and, more broadly, the
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and, in one of the largest private equity transactions announced in 2006, the management-led buyout of
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and that an AIG bankruptcy could cause an already fragile financial system to collapse, prompting the
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AIG Financial
Products Corp. Releases Innovative Academic Research on Commodities
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markets and acted as principal in nearly all of its transactions involving
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The United States Life
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The story of AIGFP losses is substantially profiled in the book
286:"Unwinding at AIG Prompts Pasciucco to Ponder Systemic Failure"
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AIG Former
Auditor Warned About Derivative Valuation in 2007
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The losses at AIGFP caused credit agencies to downgrade the
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National Union Fire
Insurance Company of Pittsburgh, PA
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products. AIGFP played key roles in the acquisition of
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Companies that filed for
Chapter 11 bankruptcy in 2022
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In spring 2008, AIGFP suffered enormous losses from
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The
Variable Annuity Life Insurance Company (VALIC)
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Behind
Insurer’s Crisis, Blind Eye to a Web of Risk
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58:corporation in September 2008. The resulting
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66:all of AIG. Many believed that AIG was
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449:American General Life Insurance Company
574:American companies established in 1987
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459:Fuji Fire and Marine Insurance Company
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263:, New York Times, September 27, 2008.
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37:global financial crisis of 2008–2009
559:Companies based in New York (state)
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284:Teitelbaum, Richard and Hugh Son.
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17:AIG Financial Products Corporation
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111:AIGFP focused principally on OTC
385:(current non-executive chairman)
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19:(AIGFP) is a subsidiary of the
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249:What Greenberg Might Have Said
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72:Federal Reserve Bank
44:credit default swaps
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23:, headquartered in
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64:bankrupted
539:(spinoff)
349:(founder)
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364:Ed Liddy
530:Related
154:and K.
97:History
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29:London
513:(now
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