Some history of AIG. Maybe China would like to see the AIG bailout continue.

The history of AIG includes….

1919 - The AIG companies were one of the very few U.S. companies to have their origins in China when their founder, C.V. Starr, formed American Asiatic Underwriters in Shanghai.

1921 - C. V. Starr founded Asia Life Insurance Company, the first foreign life operation to offer products and services to the Chinese people.

1931 - International Assurance Company, Ltd was established. It was renamed American International Assurance Company, Limited in 1948.

1975 - AIG former Chairman & CEO, Maurice R. Greenberg, made his first visit to Beijing and has since traveled many times to China.

1980 - The AIG companies opened a representative office in Beijing, the first set up in modern China by a foreign financial institution. China America Insurance Company (CAIC) was formed as a 50-50 joint venture between AIG companies and the People’s Insurance Company of China (PICC). This was the first joint venture between a foreign insurance organization and PICC.

1990 - The AIG companies organized, financed and chaired a major financial services conference in Shanghai to assist then Mayor Zhu Rongji in introducing the international financial community to investment opportunities in Shanghai.

1992 - The AIG companies strengthened their presence in China through a branch office of AIA in Shanghai, the first foreign-owned life and non-life insurance business to receive a license from the People’s Bank of China.

1994 - AIA-Shanghai and Fudan University jointly established AIA-Fudan Actuarial Center. AIA Information Technology (Guangzhou) Co., Ltd. was established.

1995 - The AIG companies were granted life and non-life insurance licenses for Guangzhou by the People’s Bank of China.

1996 - AIA signed a 30-year lease agreement on the building at 17 Zhongshan East No. 1 Road in the heart of Shanghai’s famous Bund. This special building was home to C. V. Starr’s original Shanghai insurance companies. AIA-Zhongda Actuarial Center was established in Guangzhou.

1997 - On approval from the People’s Bank of China, AIA Shanghai General Insurance Division was re-named and established as AIU Insurance Company Shanghai Branch.

1998 - AIA celebrated its historic return to Shanghai’s Bund.

1999 - The AIG companies obtained licenses from the China Insurance Regulatory Commission (CIRC) to operate life and non-life insurance business in Foshan and Shenzhen. AIA and AIU Foshan sub-branches and Shenzhen branches were officially opened to operate life and non-life insurance. AIA-Keda Actuarial Center was established in Hefei, capital of Anhui province.

2000 - AIA Information Technology (Beijing) Co. Ltd. was established.

2001 - The AIG companies were granted approval from the CIRC to set up wholly-owned life insurance operations in Beijing and Suzhou, as well as two sub-branches in the cities of Dongguan and Jiangmen in Guangdong Province. A representative office was opened in Chengdu, Sichuan Province.

2002 - AIA branch offices were opened in Beijing and Suzhou, and sub-branch offices in Dongguan and Jiangmen. AIG Consulting Services Co, Ltd. was established in Beijing. AIG Global Investment Corporation (Asia) established a representative office in Shanghai. AIA-Beida Actuarial Center was established in Beijing.

2003 - The AIG companies acquired a 9.9% stake in PICC P&C’s outstanding share capital at its Initial Public Offering in Hong Kong, and reached a co-operative agreement with PICC P&C to develop the accident and health insurance market in China.

2004 - AIG Global Investment Corporation, Huatai Securities Company Limited and three other participants were granted approval from the China Securities Regulatory Commission (CSRC) to start preparatory work for the establishment of AIG-Huatai Fund Management Company Limited. The compamy was approved to open business in November.

2005 - Approved by the China Securities Regulatory Commission, The Ministry of Commerce and the State Administration for Industry and Commerce, AIG Global Investment Corp. raised its stake in AIG-Huaitai Fund Management Company Limited, from 33 percent to 49 percent. AIG Private Bank Ltd. received approval from the China banking Regulatory Commission to set up its representative office in Shanghai. It is the first foreign private bank to receive approval to open a representative office in Shanghai.

A good summary of exactly what has been created and why AIG is literally now a “keystone” to the entire world economy is contained in this article.

http://www.nytimes.com/2009/02/28/business/28nocera.html

It is a must read for anyone who is not really aware of what the scope of this disaster really is. In the article you will discover that not only did the SEC know about the schemes, they actually signed off on the most egregious “tweek” (i.e. the 2a-7 put) AIG added to the basic ruinous formula.

Additionally my research has disclosed that not only were these instruments not regulated, but they also were not even monitored. There is only one agency that has records of these “assets” and their data can point to 45T worth currently outstanding.

By their own estimate this is probably less than 10% of what actually exists. If this is true it is possible that the total amount of at risk paper exceeds the GDP of the ENTIRE WORLD.

The world got a preview of the megatonnage capacity of the explosion these defaults can produce when Lehman went bust. This is the reason for the frantic wrangling occurring with all these “financial pillars” of the world, i.e. because they now are really “pillars” in the engineering sense, letting them topple literally topples the world’s financial structure.

It is easy to see how given the lack of regulation (or tacit approval) attached to these slot machines achieved the status of the financial equivalent of the male enhancement pill to companies around the world. But now the limp dingus reality has set in and no one has an answer on how to escape unscathed.

My take on what is going on is that the government is trying to find a way to put the taxpayer squarely at risk for taking the hits on these so called toxic assets by spinning some nonsense about getting a great deal on their value. Twenty five cents on the dollar are some numbers currently circulating.

So far my research has failed to reveal how the majority of these instruments could have ANY credible value assigned to them.

Related Posts:

• Government Taking Stakes In Two AIG Insurance Companies
• AIG HK Unit: Letter About Asset Sale Is False, Fraudulent
• American International Group Inc. (AIG)’s equity is currently worth zero!!!
• AIG still overvalued - $9 billion equity valuation, not $1.8 billion
• A 1 for 20 reverse split took place on AIG shares, effective this morning.

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