AIG and the Art of Adapting to the Global Economy
By Aaron Goldstein (09/20/08)
By night, for the past five years, I have been writing this column. By day, for the past five years, I have also been a dedicated employee of one of the subsidiaries of the American International Group (AIG), the world’s largest insurer.
Given that it is in my nature to write and that I happen to have a direct interest in the outcome it would be contrary to my nature to not have some comment on the matter. But before I go further I would like to state that I speak here only for myself although I hope my sentiments are shared by others.
Suffice it to say this is not an easy time for AIG whether one works in the file room or in the board room. The same can be said for AIG’s customers, policyholders and shareholders not to mention its creditors.
Much has been written about AIG’s role in the sub-prime mortgage crisis. Much will also be written about the $85 billion bridge loan by the U.S. Government through the Federal Reserve and the merits of this decision will undoubtedly be debated for many years to come. There are those who will argue the bailout is a bad idea. There will also be others who will argue the bailout is a bad idea but that it is better than all the other bad ideas out there. After all, it is easy to say there are too many lifeguards on the beach until the time comes when you discover you cannot swim. But this isn’t about how we got here. Rather it is about where we go from here.
There will undoubtedly be significant changes at AIG in the coming weeks and months. What form those changes take remains to be seen. Will AIG sell some of its holdings? If so, which ones? Will some AIG employees lose their jobs? Or will the changes be more subtle? What is apparent is that what has happened at AIG demonstrates there are no guarantees in life.
So what does it mean for me and others employed by AIG and its subsidiaries? What can we do about this state of affairs? Not much really. This is now in G-d’s hands (and those of the federal government.) The only thing that can be done is to carry forward and make the best of these circumstances. There is still work to be done. The day to day tasks must still be carried out. We have been knocked down. We have also been given an opportunity to get back up. It won’t be easy but so very few things in life are.
In times like these, I am reminded of what my late maternal grandfather said to me on several occasions during his annual visits. Granddad, who began working in a coal mine in the Crow’s Nest Pass at the age of 15, would say, “The world doesn’t owe you a living.” These past five years at AIG have been good and have represented the best experience I have had in the course of my employment history. I have a found a job at which I have excelled and my efforts have been recognized by my colleagues and superiors. There is not much more that I can ask. I intend to remain here as long as I am needed. Should it come to pass that my services are no longer required then I can look back and know I have done well. Yes, such a development would a present a problem. But it would also present a new opportunity. Back in 1999, I was laid off from Revenue Canada (the Canadian equivalent of the IRS as it was then known.) That setback provided the opportunity for me to live and work in the United States the following year. The point here is that I am prepared for whatever comes.
Of course, I write this knowing I am in a position where I only have to take care of myself. Those who must tend to children and aging parents are in a more precarious position. It is easier for me to express such sentiments than might others and as such I don’t wish to come off as overly sanguine. Yet, whatever one’s circumstances, it is invariably better to face what appears to be insurmountable with a smile rather than a frown. It makes life more bearable for yourself and for the people around you.
AIG is not the only company affected by the growing economic downturn faced here in the United States and around the world. It is very likely that other companies will find themselves in a similarly delicate situation. If that is the case I am sure their dedicated employees will have concerns of their own. I am also sure that these people will find their own way to adapt to an unpredictable global economy.
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