Governments had to come to the rescue of many firms during the 2007-09 financial crisis and one of the largest rescues was that of American International Group (AIG). Unlike most of the other firms teetering on the brink, AIG was an insurance company and not a bank. It was also a particularly international firm; not…
Expensive ventures often entail borrowing money and the banking system is one of the largest and most accessible lenders around. Their role in financing grand projects give banks the ability to make or break the dreams of developers, entrepreneurs, and even governments. Because the latter can approve, form, and regulate banks, governments are in the…
Economic meltdowns may come with warnings but they are often obvious only in hindsight. In the late 1830s, the American economy was beset by two financial crises in close succession. The first of these could have motivated the overextended, governments included, to improve their financial position but, in the aftermath of the Panic of 1837,…
While the 17th and 18th centuries saw the development of new financial institutions, with banks, insurance companies, and exchanges sprouting up, especially in Britain, these inventions generally served the financial needs of relatively few. It was the 19th century when they began to serve even ordinary people, or at least the growing middle classes, in…
