Knowledge at Wharton

Under the Microscope: AIG’s Second Chance


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American International Group (AIG) -- the insurance giant and poster child for the financial crisis -- will once again sell its stock to the public in a ”re-IPO” set for May. The firm which was shaken by soured bets on mortgage derivatives says it is recovering from its near collapse and looking forward to a bright future. Can it return to its former glory? Or should its disparate operations be broken up? Most importantly: What does the AIG story say about how well the government handled trouble at a huge financial services firm whose missteps hurt so many innocent bystanders?

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