1.AIG's corporate culture played a significant role in its downfall. They seemed more concerned about their own short-term personal gains than long-term effects. The company performed very poorly and was billions of dollars in the red, and many senior executives nonetheless received cash bonuses after the bailout. These bonuses represented almost 2 to 3 times the salaries they earned before the bailout. AIG's emphasis was on the reward system, which imposed little accountability on executives who made poor decisions. This led many to believe that AIG had neither the concern nor the recognition to change its ways. Additionally, shortly after the bailout, AIG spent more than $300,000 on a conference held at a lavish resort in Phoenix. This did not sit well with stakeholders. AIG executives and senior management have repeatedly shown little change in their business practices, even after the bailout. AIG's corporate culture also played a role in its downfall by repeatedly allowing higher-risk transactions to continue. Even if the risk was...