The New AIG : Re-structuring and the Future

News and Reviews - Having our core business in Insurance, we realize the value and potential of AIG - the largest insurance company on planet earth. They control around 10% of Insurance Capacity of total business which is around USD 3.5 trillion. Are they still the largest, is a topic of discussion amongst Risk Managers and Insurance Pundits? The new CEO Edward M Liddy (forth in last 36 months and ex chief of AllState Insurance) is putting up a brave face with both Customers and Staff that AIG will remain solvent and will sure emerge back as ‘the darling Insurance Company’. Lot of water has passed under the bridge in last 15 days for this Insurance giant and things are not looking as rosy. Of course, AIG is now a Govt. of America Insurance Company as over 80% of stock is being pledged against USD 80.00 billion loan. What makes people uncomfortable is that the patriarch & Ex-CEO, Maurice Hank Greenberg has sold 5.00 million of his personal shares last week, thus bringing down his stake considerably in the company, he once built it. The AIG share price from its historical and unbelievable low of USD 1.50 (before the bailout) is now hovering around USD 3.50 per share. Till it reaches USD 10.00 mark and the Campany Rating remains in negative zone, the fear will remain with Investors and Consumers alike. Ms Mary W. Walsh of New York Times has given a fantastic analysis of company’s lingering threats, restructuring (business on sale) and the future of AIG. Click to read on ….

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Germans, Deutsche Bank and Credit Crisis - An analysis

News and Reviews – What is common in BMW, Mercedes, Montblanc, Allianz, Lufthansa and Deutsche Bank? Well they all are leading brand in their segment and they all belong to GERMANY - the fatherland of quality goods. Germany is the largest economy in Europe and third largest in the world after USA and Japan. The mindset of German people in terms of finance and savings are very much like Japan and India. Credit is not considered good. Savings is a bigger motivation vis-à-vis Spending. So, how is the country doing in the current credit crisis? Nicholas Kulish has printed an insightful article in New York Times, giving perfect reflection about the German mindset, impending challenges and adopted actions from historical perspective. Click to read on …