AIG is an insurance agency that fell victim to the housing
market collapse. The company was considered "too big to fail" and
bailed out by the US government. The scandal related to the
underhanded tactics and fraud perpetrated by AIG executives.
Related Q&A：
What was the AIG scandal？Oh boy, the AIG scandal was a real doozy!Basically, AIG, which was a huge insurance company, got into a ton of trouble. They made risky bets in the financial markets, especially with credit default swaps. When the economy took a nosedive, AIG was on the verge of collapse. They had to be bailed out by the government with a ton of taxpayer money. This caused a huge uproar because people were really angry that their hard-earned money was going to rescue a company that made such bad decisions. It was a major mess and really shook people's trust in the financial system.
