Resolution of Business conflict Research Paper Example | Topics and Well Written Essays - 500 words

Resolution of Business conflict - Research Paper Example They can be monetary as well as non-monetary in nature. When calculated, it takes into account financial losses, wastage of time and wasted resources. In this specific case with two major participants, the problem was that they were influential enough to create concerns and panic in the economy and could cause fluctuations in the financial stability of the industry. The costs of this specific conflict were that first of all, it fueled the mortgage concern more than it would actually have oscillated. The Insurance Company had to pay a huge price to investors who faced a rapid mortgage decline. Goldman had apparently inflated its losses more than their actual value, and demanded most of what AIG had been left with. Goldman had a major share in the rapidity of the problems created for AIG, which was already stuck in a complicated mesh of loss in the financial world as an insurance company that collapsed because of a decline in the mortgage market. That was the point where the government intervened in the resolution of the conflict. Both parties were adamant with their behavior and did not consider any compromises which could ruin or at least create confusions about their position in the industry. Goldman, along with pressing AIG for further payments pushed other institutions such as Societe Generale, a French bank to ask for payments from AIG as well. Even though AIG was practicing a somewhat more lenient policy towards Goldman, it appeared as if there was something awkward about Goldman Sachs strategies of compelling AIG’s scenario to worsen. After research, it was found that an unreported $2.9 Billion was undeservingly lying in Goldman’s reserves- undeclared and unreported. Gold man’s concern was that AIG should not be demanding payment back from them. If it was not enough in the first place, AIG should have objected before paying it. The issue between the giant companies was not