For now, more than 110,000 employees of AIG (American International Group) worldwide can breath a sigh of relief, after the US government moved to bail the company out and prevent it to collapse.The private financial firm was on the brink of a financial disaster and seemed destined for the same fate as Lehman Brothers, which went bankrupt this week, until the last minute intervention by the Federal Reserve.
Ironically, Lehman Brothers went to Fed for assistance but was refused help.
AIG’s main financial problems lie in its insurance of mortgage-backed securities, and risky debts. In the rescue packaged agreed, the Federal Reserve would be injecting $85 billion of fund in return of majority shareholdership with 79.9% stake in AIG. The Fed will now have power to restructure the management team, and is expected to remove some of the senior managers.
The bulk of AIG employees are stationed in their main regional offices, including in New York as their global headquarter, London, Paris and Hong Kong. The company provides a broad range of financial services ranging from property, auto protection, life insurance, casualty, annuity, IT services and investment.
In 2008, Forbes named AIG as the 13th largest company in America, and 35th largest in the world with $110 billion revenues.
Working in MNC also not so secure weiiii .....
