american international group

Legal Briefing: AIG to Pay $725 Million Fraud Settlement, Eventually

In the settlement of a lawsuit that predates the financial meltdown, AIG has agreed to pay shareholders $725 million for years of fraudulent practices that led to investors loosing money on the stock. But they only get $175 million up front. The rest, they may wind up getting in shares of AIG.

Goldman Makes Another Great Deal -- for Goldman

The $550 million SEC settlement is just 8.9% of the $6.2 billion increase in Goldman's market value on the day the deal was announced. And it's an even smaller portion of the cash, backdoor, taxpayer-funded bailout Goldman was handed in 2008.

Trouble in the Boardroom: AIG's Golub Is Latest to Resign

The chairman of AIG was not the only top executive to resign in recent weeks. In what appears to be a clash of the titans in corporate boardrooms, the heads of Paychex, H&R Block, and W.P. Carey have also recently joined the ranks of the unemployed.

MBIA Shares Jump After Fairholme Buys 11.1% Stake

Share in financial services company MBIA are up more than 10% in pre-market trading after Fairholme Capital Management, the investment firm headed by Bruce Berkowitz, disclosed that it had purchased an 11.1% stake in MBIA, the world's largest bond insurer.

Legal Briefing: iPhone Lawsuit Moves Forward

An antitrust class action against Apple and AT&T is going forward, charging that Apple's five-year exclusive agreement with AT&T makes a sham of the two-year contracts iPhone users sign with AT&T and is part of an effort to monopolize the iPhone market.

2008 Meltdown Vs. the S&L Crisis: Which Was Worse?

In the late '80s and early '90, more than 1,000 savings & loans failed in a financial crisis that cost the government $220 billion to resolve. By contrast, it looks like TARP will only cost the government $105 billion. So is the current financial crisis only half as bad? Not bloody likely.

AIG's Bailout
Was Needlessly Expensive

When the government bailed out AIG, it paid 100 cents on the dollar amount demanded by the banks: $67 billion. Former AIG executive Joseph Cassano says he has no idea why the government paid full price, asserting that he could have "negotiated an appreciably better deal" for taxpayers.

GS No. 1 in M&A

Despite fraud charges and adverse publicity over bonus payments, Goldman Sachs has reclaimed its position as top global mergers and acquisitions advisor for the first half of 2010.

Health Care Reform: This Should Be a Bit Longer

But the key word here is "payroll:" this new health care tax is on earned income-wages, salaries and bonuses-while the income of the truly wealthy comes from "unearned" investment income: rents, interest from tax-free municipal bonds, dividends, etc.

Can Buffett Be Objective About Financial Crisis?

Next week, Warren Buffett will give his expert opinion about the causes of the 2007 Wall Street meltdown to the government's Financial Crisis Inquiry Commission. But will the Oracle of Omaha's testimony be objective, or will it be slanted to benefit his own mammoth investments?

Legal Briefing: Microsoft's Attack on Click Fraud

Microsoft has launched a click-fraud lawsuit in its fight against the practice that drives up costs for online pay-per-click advertisers. But where are Google and Yahoo, who own huge pay-per-click networks, in this battle?

Enron Flops Again -- This Time on Broadway

An attempted terrorist bombing in Times Square didn't stop theater curtains rising on Broadway. But the highly anticipated musical Enron -- closed almost instantly, even though it was so successful in London. Apparently, Americans weren't nearly as amused.

Legal Briefing: FCC Won't Force Broadband Competition

In order to enforce net neutrality rules, the FCC is reclassifying ISPs into the same category as phone companies. Now, the agency has the authority to drastically improve broadband competition -- but it won't.

AIG May Sue Goldman for $2 Billion in CDO Fraud Case

According to The Financial Times, AIG is hoping to piggyback on the SEC's fraud case against Goldman Sachs to recover $2 billion that it paid the investment bank. But what's missing from the article is any evidence that AIG has a case against Goldman.

Dodd Calls on GOP to Support Financial Reform

With the Senate preparing to take up major financial reform legislation this week, Senate Banking Committee Chairman Christopher Dodd called on Republicans to join in supporting the major regulatory overhaul. "This comes right down to this basic fact," said Dodd. "Whose side are you on?"

Did Goldman Director Pass Insider Info to Galleon?

The insider trading case against Galleon hedge fund founder Raj Rajaratnam has led investigators to look closely at Rajat Gupta, a Goldman Sachs director. Prosecutors believe Gupta may have shared inside information about the investment bank with Rajaratnam during the depths of the financial crisis.