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    Danilo Berano Barredo
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    The document summarizes a settlement between the American International Group (AIG) and the U.S. Securities and Exchange Commission regarding financial reporting violations. As part of the settlement, AIG agreed to pay $800 million in fines and disgorgement and implement new compliance measures. The fine amount took into account AIG's cooperation with the investigation. The settlement concluded the SEC's examination of AIG, but other investigations into potential participants in AIG's securities law violations will continue. The document also briefly explains that the Sarbanes-Oxley Act of 2002 was passed to help protect investors from fraudulent financial reporting.

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    The document summarizes a settlement between the American International Group (AIG) and the U.S. Securities and Exchange Commission regarding financial reporting violations. As part of the settlement, AIG agreed to pay $800 million in fines and disgorgement and implement new compliance measures. The fine amount took into account AIG's cooperation with the investigation. The settlement concluded the SEC's examination of AIG, but other investigations into potential participants in AIG's securities law violations will continue. The document also briefly explains that the Sarbanes-Oxley Act of 2002 was passed to help protect investors from fraudulent financial reporting.

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    © All Rights Reserved
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    36 views7 pages

    FM Ass 2

    Uploaded by

    Danilo Berano Barredo
    The document summarizes a settlement between the American International Group (AIG) and the U.S. Securities and Exchange Commission regarding financial reporting violations. As part of the settlement, AIG agreed to pay $800 million in fines and disgorgement and implement new compliance measures. The fine amount took into account AIG's cooperation with the investigation. The settlement concluded the SEC's examination of AIG, but other investigations into potential participants in AIG's securities law violations will continue. The document also briefly explains that the Sarbanes-Oxley Act of 2002 was passed to help protect investors from fraudulent financial reporting.

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    © All Rights Reserved
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    of 7

    DHANILLA MAE A. BARREDO Prof. Kathleen G.

    Lao
    2MKTG-3 Financial Management
    ASSIGNEMNT 3
    1. Research about the American International Group (AIG) Scandal. Provide a brief summary in
    your own words.
    The Office of the New York State Attorney General, the Superintendent of Insurance for the State of New
    York, and the United States Department of Justice, who have all achieved agreements with AIG, worked
    together to announce the settlement before the Commission. According to the terms of the settlement with
    the Commission, AIG will make a total payment of $800 million, which consists of a disgorgement of
    $700 million and a penalty of $100 million, as well as implement company measures aimed at preventing
    future instances of the same type of misbehavior. The fine is calculated taking into account AIG's
    significant assistance with the Commission's investigation. According to Linda Chatman Thomsen,
    Director of the Commission's Division of Enforcement, "This significant settlement resulted from our
    industry-wide inquiry into the abuse of finite insurance and reinsurance. While this agreement brings an
    end to our examination of We have sought to balance AIG's historical misconduct - which was
    significant - with its new approach to compliance and cooperation with regulators and law enforcement in
    this settlement, according to Mark K. Schonfeld, Director of the Commission's Northeast Regional Office.
    "AIG, our investigation continues with respect to others who may have participated in AIG's securities
    laws violations," he added. Also included in the Commission's settlement

    What Federal Law in 2002 was submitted in order to help and protect investors from fraudulent
    financial reporting? Explain briefly.
    The Sarbanes-Oxley Act of 2002 is a law the U.S. Congress passed on July 30 of that year to help protect
    investors from fraudulent financial reporting by corporations. 1 Also known as the SOX Act of 2002, it
    mandated strict reforms to existing securities regulations and imposed tough new penalties on
    lawbreakers.

    2. Say you are an investor and looking for two publicly listed companies, research and provide their
    Balance Sheet, Income Statement, Statement of Cash flows and Statement of stockholder’s equity.

    BALANCE SHEET
    INCOME STATEMENT
    STATEMENTMENT OF CASH FLOWS
    STATEMENT OF STOCKHOLDERS’ EQUITY

    MEDICINE

    Balance Sheet

    Income Statement
    Statement of Cash Flow
    Statement of Stockholder’s Equity

    3. Check and compare their financial statements. Highlight one area (liquidity, debt management,
    asset management, market standing, profitability) and decide if you still want to invest. Explain
    briefly.
    In order to get insights into profitability, liquidity, operational effectiveness, and solvency, ratio analysis
    examines line-item data from a company's financial statements. Ratio analysis allows you to compare one
    firm to another within the same industry or sector and track how one company has changed over time.
    External parties who set standards frequently associated with risk may also demand ratio analysis. While
    ratios can provide helpful information about a firm, they should be used in conjunction with other
    measures to provide a more complete picture of that company's financial situation.Current ratio, gross
    profit margin ratio, and inventory turnover ratio are a few examples of ratio analysis.

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