AIG Current Issues Pertaining to Business Law

AIG (American International assemblage Inc) has most recently been a ballpark feature on American as well as international headlines following its possibility of going into evacuation as a leave behind of pecuniary difficulties. The federal official governance bailout extended to the high society to inspection and repair it in reviving its activities has also been a topic of discussion.Following all these, issues related to duty law have been a earthy occurrence as AIG fights legal battles and accusations from raging customers demanding their investment monies. AIG has as a result lost clients, employees and personal credit line in general. This newspaper publisher focuses on these and other current events pertaining to business law at AIG.AnalysisAIG was recently face up with an economic downturn as a result of the current economic crisis. AIG is verbalise to have made losses expenditure $62 trillion in the quaternary quarter of 2008 (Sorkin, 11-14). As a result, i t has non been able to acquit its credit dues on time.Creditors ar constantly knocking on AIGs doors to obtain their money as they idolatry that the companionship could fail to remunerate them under the current financial difficulties it is experiencing. AIG has resulted in change its assets in order to meet its obligations to creditors and line 2008 it obtained bailout from the giving medication.Following the presidency bailout, AIG is no longer a wholly private company. The majority shares of AIG are immediately in the hands of the organization hence it expects to receive more government control.AIG traded 79.9 percent of its shares for the federal government bailout. The government now possesses the rights to suspend dividends to the previously usual and preferred stock.This is an indication that the company has ceased from be a fully private company to a nationalized one. It therefore owes the citizens who are delineate by the government to contain profitably as well as hark back the loan advanced by the government from the tax payers money.As a result of the government bailout, AIG has to adjust itself to the governments requirements and laws that have been set for companies obtaining bailout.For example, The place of Representatives passed a requirement that all companies receiving federal government bailout exceeding $5 should pay 90 percent on bonuses habituated by companies. The companies must also operate with positive net value so that they can be able to pay up the loans advanced. If this is not so, the government result force companies that cannot pay up into liquidation Mich, 23-25).AIG has been under scrutiny following the vainglorious benefits that were issued to its more than 400 employees in the financial products division ranging between $1 one thousand million and 6.4 million. This follows the fact that AIG received $170 billion as federal government bailout which has necessitated investigations on how AIG was spending the taxpayers money.(Turkish Weekly, 22-29). The government owns 79.9 percent of AIG now and as a result the overt is the major shareholder of the company and this is what has created a major uproar in the human race about AIGs activities. There are claims that the company is not taking its responsibilities towards shareholders in a serious manner.Edward Liddy, AIGs chief executive officeholder told the congress in March, 2009 that the company had asked the employees to dedicate half of the bonuses received (Sorkin, 19-23). Further, he argued that the reason out for the hefty bonuses was an attempt to retain employees in the financial products division.