AIG Current Issues Pertaining to Business Law

AIG (American International Group Inc) has more or less recently been a parking lot feature on American as well as international headlines following its possibility of going into excreting as a result of financial difficulties. The federal regime bailout all-embracing to the ac association to help it in reviving its activities has also been a case of discussion.Following all these, issues related to business law have been a common occurrence as AIG fights legal battles and accusations from enraged customers demanding their investment monies. AIG has as a result lost clients, employees and business in general. This paper focuses on these and different current events pertaining to business law at AIG.AnalysisAIG was recently faced with an sparing downturn as a result of the current economic crisis. AIG is verbalize to have made losses worth $62 gazillion in the fourth quarter of 2008 (Sorkin, 11-14). As a result, it has not been able to suffer its credit dues on time.Credit ors are constantly knocking on AIGs doors to bring their money as they fear that the company could fail to pay them chthonian the current financial difficulties it is experiencing. AIG has resulted in selling its as preparations in order to wager its obligations to creditors and beginning 2008 it obtained bailout from the disposal.Following the government bailout, AIG is no longer a wholly unavowed company. The majority shares of AIG are now in the hands of the government thence it expects to receive more government control.AIG traded 79.9 part of its shares for the federal government bailout. The government now possesses the rights to suspend dividends to the previously common and preferred stock.This is an indication that the company has ceased from being a fully private company to a nationalized one. It then owes the citizens who are represented by the government to operate profitably as well as repay the loan advanced by the government from the tax payers money.As a res ult 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 House of Representatives passed a requirement that all companies receiving federal government bailout transcend $5 should pay 90 percent on bonuses given 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 will force companies that cannot pay up into liquidation Mich, 23-25).AIG has been under examination following the handsome benefits that were issued to its more than 400 employees in the financial products variance ranging between $1 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 pu blic is the major stockholder of the company and this is what has created a major uproar in the public active AIGs activities. There are claims that the company is not taking its responsibilities towards shareholders in a serious manner.Edward Liddy, AIGs chief executive officer told the congress in March, 2009 that the company had asked the employees to return half of the bonuses received (Sorkin, 19-23). Further, he argued that the reason for the hefty bonuses was an flack to retain employees in the financial products division.