Case Report: Demise of AIG Global Financial Market

At the end of the class, you must submit one work package including one case report (85%) AND one calculation problem set (15%). You must combine the case report and the calculation problem set in one file. The deadline is August 4th at 4 pm. I will upload the calculation problem set one or two weeks before the due time. A submission folder in Surrey Learn has been created for that time. Please submit your package in one file before the due time. You will be penalized if you submit late. 10 points will be penalized for each 1 hour late. This will be automatically done by the system. For example, if you submit 6 hours late, you will at most get 40, which means to fail in this course. Please reserve enough time to upload your report in Surrey Learn.

In addition to the calculation problem set, each student will complete one case report. The case report is to test your knowledge and skills to write a case report in international corporate finance. The instructor will provide 4 case materials. You can choose one case you like and finish a report on the case. For each case, the instructor will provide 3 questions to be answered in the report. It is very important to show critical thinking of each question. Your grade for the case report will depend on whether you have answered all three questions in each case and have showed some critical thinking of each question. Remember that all questions in the case can be open in some sense. There will be no correct answer beforehand. The more important is how you get the answer through your analysis.

Write the title with your ID in the first page. In addition to the case materials and the slides, you are required to find at least 5 additional sources of information related to the case and cite them in the report. Please use Harvard style to cite references. Do not copy and paste a long sentence from references. If you want to use them in the report, you should re-write the points in the references using your own words. The report should have an easy structure to follow.

Please upload a WORD file. Each report should have three sections:

1. Introduction: you describe the case, highlight the points which are important in your view, summarize all questions you want to analyze in your report.
2. Main Analysis: if you pick up any case provided by the instructor you must address all the questions that I have brought to this case. Your answer to each question will be one subsection in main analysis. You must summarize each question using a few words and use these few words as your title for each subsection.
3. Conclusion: you conclude the case, and briefly summarize your main analysis.

You must submit a report with at least 2,500 words and no more than 3,500 words in length. The section of Main Analysis should have at least 1,500 words. The section of Introduction and Conclusion should have no more than 1,000 words. You can make any reasonable assumptions to do the analysis.

Case 4 The demise of AIG Global financial market

You can find your own case materials and write a report using the case you choose. The content of the case should be related to international finance. For students who want to use their own cases, they should have materials to describe their cases. They must submit their case materials and corresponding questions and get the instructor�s approval before writing the report using the case. You should also follow:

Introduction, Main Analysis, and Conclusion. If you use your own case materials, you should submit the case report along with your case materials. Students are NOT allowed to write a case report by only providing a topic to the instructor. You must have case materials in hand like four case materials uploaded in SurreyLearn.

You may have some major or minor limitations in the report. By a major limitation, it means the following cases:

(1) you do not answer one question provided by the instructor;

(2) you do not meet one requirement listed above;

(3) your answer is not �relevant to the question;

(4) your answer has one mistake. By a minor limitation, it means the following cases:

(1) you partly answer one question;

(2) you partly meet one requirement and miss something.

If your report does not have any limitation, you will get 70 or above. For each major limitation, you will get ?6 from 70. For each minor limitation, you will get ?3 from 70. The highest mark of the case report is 75. Then all penalty points like ?3 or ?6 are adjusted accordingly.

The demise of AIG (American International Group) in the global financial market can be traced back to the 2008 financial crisis. AIG was one of the largest insurance companies in the world, and its downfall had a significant impact on the global financial system.

AIG's troubles began when it was discovered that the company had issued large amounts of credit default swaps (CDS) without having sufficient reserves to cover potential losses. CDS are a type of financial derivative that provides insurance against the default of a financial instrument or entity. AIG had issued CDS on a wide range of assets, including subprime mortgages and collateralized debt obligations (CDOs).

When the housing bubble burst in 2007 and the subprime mortgage market collapsed, AIG was unable to meet its obligations on the CDS it had sold. The company faced mounting losses and was forced to seek a bailout from the U.S. government.