Why did AIG go bankrupt?

AIG is not bankrupt. On September 16, 2008, AIG received financial assistance from the US federal government to avoid bankruptcy.

On the evening of September 16, 2008, the Board of Directors of the Federal Reserve announced that it would authorize the Federal Reserve Bank to lend $85 billion to American International Group (AIG). In return, the US government will also accept 79.9% of AIG 79.9% The Fed said that this decision was fully supported by the Ministry of Finance, and its conditions also protected the interests of the US government and taxpayers.

American International Group is the largest insurance company in the United States. 20 1 1 due to the financial crisis, apply to the federal reserve for capital injection. After the US government failed to coordinate the capital injection of private enterprises, the news that AIG might be taken over by the US government came out earlier, and its share price plummeted because investors were worried about the loss of its share price.

In a statement in the evening, the Federal Reserve pointed out that under the current circumstances, the disorderly collapse of AIG may make the already poor financial market more fragile, and lead to a substantial increase in borrowing costs, a decrease in family wealth and a weaker economy.

The Fed also stressed that the interests of American taxpayers are protected; The loan is guaranteed by all the assets of AIG and is expected to be recovered by selling the company's assets. The loan period is 24 months; The U.S. government will accept 79.9% of the shares, and will have veto power over the dividends of common and preferred shareholders.

Treasury Secretary Henry Paulson subsequently issued a statement expressing support for the actions taken by the Federal Reserve. A White House spokesman also said that President Bush supports the statement of the Federal Reserve that these actions can promote the stability of financial markets and limit the damage to the overall economy.

Due to the critical financial situation, AIG plans to reorganize its corporate business and sell some high-quality businesses to raise much-needed funds. The industry estimates that in order to make ends meet, AIG needs to raise up to $40 billion.

AIG is the largest insurance company in the United States, employing about 8,500 employees in new york. According to The New York Times, most of the business of American International Group (AIG) was running well, but its financial products department in London, England, was capsized by a mortgage-related bond, which led to the collapse of Lehman Brothers.

Since the outbreak of the subprime mortgage crisis in the United States, AIG has made a net loss for three consecutive quarters. In the second quarter of 2008, the cumulative loss of credit default swap business was as high as $25 billion, and the cumulative loss of other businesses also reached $654.38+05 billion.

Extended data:

The impact of the subprime mortgage crisis:

1, to the American economy

First of all, many financial institutions in the United States won the bid in this crisis, and their subprime mortgage problems far exceeded people's expectations. Second, the fundamentals of the American economy are strong, and there is no lack of motivation to continue to grow.

This is because the United States is still the strongest in the world in all aspects. For example, the latest world university rankings show that the scientific and technological strength and innovation of the United States are still the first in the world, and no country or organization can shake it for quite some time; And the United States has a strong ability of self-regulation. For example, in the 1970s, the strategic contraction of the United States effectively eased the crisis at that time.

However, some critics believe that the economic crisis of the United States in the 1970s was not solved at all, the debt increased year by year, and there was no trade surplus since 1975. Whether it is Keynesian Roosevelt's New Deal or the neo-liberalism replaced in the 1970s, the United States can't fundamentally get rid of the economic crisis without solving the gap between social distribution and total social demand and total social supply.

2. For the global economy

The bursting of the real estate bubble will continue to hinder the growth of production. The bigger question is, what impact will the factors that affect the double-digit decline in house prices have on the United States, because American consumers borrowed heavily at the peak of the real estate bubble. Optimists get some comfort from the rebound in consumer spending, but this may be a mistake.

The double-digit decline in house prices will make more and more mortgage borrowers fall into financial difficulties. Other consumer debts have already gone wrong. For example, the credit card default rate is rising, and lending institutions are likely to face a more difficult situation. As homeowners feel poorer and poorer, consumer spending is bound to be curbed, especially when the stock market continues to fall.

Even if the direct financial contagion is controlled, the subprime mortgage crisis in the United States may produce psychological contagion, especially the revaluation of housing prices. Although the scale of reckless lending to high-risk borrowers in the United States is larger than that in other parts of the world, house price inflation has been more serious than that in the United States, and countries such as Britain and Spain are more vulnerable to the bursting of the house price bubble.

In addition, The Economist also pointed out that the ability of the global economy to resist the weakness of the US economy should not be exaggerated. Although the current account deficit in the United States has been declining, it still accounts for about 6% of GDP. Because Americans consume far more products than they produce, Americans are still one of the biggest sources of demand in other parts of the world, and their sharp decline in demand will inevitably damage the economies of other regions.

3. For the economy of China,

First of all, the subprime mortgage crisis mainly affected China's exports.

The subprime mortgage crisis has slowed down the growth of American economy and global economy, and its impact on China's economy, especially its exports, cannot be ignored.

In 2007, China's monthly export growth rate dropped from 5 1.6% in February 2007 to 2 1.7% in February 2007 due to the weak import demand in the United States and Europe. The US subprime mortgage crisis led to a decline in China's export growth. On the one hand, it will slow down the economic growth of China to a certain extent. At the same time, due to the slow economic growth in China, the social demand for labor force is less than the supply of labor force, which will increase the employment pressure of the whole society.

Secondly, China will face the dual pressures of slowing economic growth and severe employment situation.

The real economy, especially industry, is under great pressure. The closure of a large number of small and medium-sized processing enterprises has also aggravated the grim situation of unemployment.

Finally, the subprime mortgage crisis will increase China's exchange rate risk and capital market risk.

In response to the negative impact of the subprime mortgage crisis, the United States adopted a loose monetary policy and a weak dollar exchange rate policy. The sharp depreciation of the US dollar has brought huge exchange rate risks to China. With the economic slowdown in developed countries, China's economy continues to grow, the dollar continues to depreciate, the expectation of RMB appreciation continues, and international capital flows to China to find a safe haven, which will aggravate the risk of China's capital market.

Baidu Encyclopedia-American International Group

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