Now that AIG has been nationalized, some folks are wondering just how their tax dollars are being spent. If you’re among them, we have some bad news for you from ABC. They are reporting that papers uncovered by congressional investigators show that “less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California.” Ouch.
ABC says that the documents show that the company, yes the company, paid more than $400,000 for a week long retreat at the resort. The bill included $200,000 for rooms, $150,000 for meals and $23,000 in spa charges. 
“They’re getting their pedicures and their manicures and the American people are paying for that,” said Cong. Elijah Cummings (D-MD).
AIG’s former CEO told Congress today that AIG was a victim of a “crisis in confidence” and an “unprecedented global catastrophe,” but records show that there were serious concerns about the way the company was being managed.
In March, 2008, the Office of Thrift Supervision wrote AIG, “We are concerned that the corporate oversight of AIG Financial Products…lacks critical elements of independence, transparency, and granularity.”
Congressman Waxman also said that there was evidence that the former CEO changed the bonus schedule in order to insure that top executives would continue making multi-million dollar salaries, even as their company went broke.
“Mr. Sullivan and the other top executives should have had their bonuses slashed due to poor performance,” said Waxman.
Sullivan received a $15 million golden parachute payment when he was let go in June, says ABC.
After Bailout, AIG Execs Head to California Resort [ABC] (Thanks, Melanie !)
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Whether they are punished or not, I’m sure, depends on the amount of power the politicians they have purchased (uh, I mean whose campaigns they have contributed to) have.
Without defending these self-serving idiots I’ll be the resort had a 100% cancellation policy. Of course, what the hell were they doing booking this in the 1st place? Talk about fiddling while Rome burns!
um, if I did that, it would be fraud, and I would go to jail. I would like to know if they are bring up charges, if if not…why not? I wonder who I may send a letter to regarding this inquiry??
No problem, they just all have to PAY IT BACK.
With INTEREST.
As of Oct 3, AIG has already used up $61 billion of the $70 billion loan from the government.
http://www.nytimes.com/2008/10/04/business/04insure.html
We need to get rid of these damn severance packages for executives. Or cut them like crazy. Maybe then they would think twice about making stupid decisions that hurt the company/public. I mean if I was them and stood to make millions even if I screwed everything up, why the hell would I care?
All of these executives deserve to be fired. Or whoever planned this trip. That is just wrong. They have a job to do, not sit in a spa all day and get paid for it.
Where did I put that piano wire?
And this while my wife and I – both full time students – can’t afford to get her potentially life-threatening illness taken care of, or even diagnosed, due to poor insurance coverage and low-income.
WHAT THE FCUK!!!???
there will be blood after I drink their milkshake.
Interesting, I commented right after the bailout became official that I was waiting for the first story like this. There will be MANY more, believe me.
@BoomerFive: I’m sure for every story like this that makes it into the news, it happens ten or a hundred times that we’ll never know about.
Come on, it was a tough time for them and they needed to take a break and relax. It can be very nerve wracking to be caught screwing up the entire country and causing the the largest insurance company in the world to fail.
Apparently they had The Strength To Be There. In California.
This just confirms my thoughts that big business continues to pay off politicians while the rest of the country goes to hell. Nobody is going to do anything because the politicians have already been paid!
Since we own 90% of AIG, can’t we have them fired? This should be a clear-cut case. Get a list of who went, show them the door. No severance, no unemployement, you’re fired, get out.
This is quite possibly one of the most disgusting things that I’ve ever seen in the world of business. I’m not surprised that they mismanaged the money, but I doubted that they’d do it so blatently. Between this and the arbitrary amount of money that the bailout gave out, I think that the only solution is a revolution (hey, that rhymed! uh… oops). Well… maybe not a solution, but certainly some sort of systemic change such as an increase in business regulation.
But stuff like this is what makes me sick about this country, even after having lived in it all my life. I feel betrayed. When I was a kid, I was damned proud of our country, and its supposéd freedoms. But we, the People, would rather swallow a bucket of Kentucky fried LIES than eat the eggplant of JUSTICE! Er… or something like that. But the actual point is this: this isn’t the country I was sold. I want my money back.
Jail wont happen. When you rig the game and get the laws changed so you can do the things that lead up to this crap its not against the law so no jail. I still beleive in the republic we have and I am ashamed I did’nt take the time to understand the fucking I allowed our ELECTED officials to foist upon us. I vow to try to be more involved with the small addons and confusing parts of further new laws.Or if an open revolt happens I know who I will go looking for. Only the people can fix this one way or another.
My husband has worked for AIG for the past 10 years. In that time he has lost his office, and works from our house. I know most people beleive all employees from AIG are just like these no count greedy executives. But, let me tell you they aren’t. Like I said my husband works from our house. Leaves most morning at around 7:15am and doesn’t return home till 9:30 or 10:00 at night. This is 5 days a week and sometimes on Saturday. I should really he works from his truck and his cell phone. Since the company closed their office. His cell phone bills are outrageous and we receive no help with this. With gas prices the way they are it is most difficult. But he doesn’t complain. His customers like to see an agent, most don’t like to mail their payments in. We don’t even get a vacation, because his book has to be collected and death claims are personally serviced by him as well as health claims that need to be filled every week. My husband loves his job, he feels he does a wonderful service for his customers and goes above and beyond what most agents do. Unfortuntly, on the news all people see are these greedy executives and not the work force of the company. The field force is what drives this company and does the work. NOT THOSE GREEDY PEOPLE WHO HAVE NEVER WORKED LIKE MY HUSBSAND DOES. The sad thing is he gets no recognition for the job he does. Our sons and I are very proud of my husband. Just realize there are honest workers in AIG.
I am an employee of American General Life & Accident Company. I work as an Agent, selling and mostly collecting life and health insurance premiums. This makes me so MAD!!!. I’ve worked for American General (AIG) for over 10 years, last November, they decided to close our local office, I didn’t lose my job, but was left with no office for my customers to come in and pay their insurance. After several Agents quit the company due to a poor pay contract, I was offered and took a service agent position. I collect and deposit over $2500.00 every day while also making sales. I have stayed with American General due to the fact that their policies I believe to be of more value to my existing and future customers. I thought it was a slap in the face that after working several additional accounts for over two months without extra compensation, they would close the office which they paid less than $600.00 a month for. With the new contract that finally took effect, i am making above average money, but the work load is doubled. When I heard on the news of the chiefs taking their BIG vacation after being bailed out, I thought to myself, I wish I could even take my family on a vacation for a weekend. The executives of AIG should walk a week in my shoes, and remember what WORK IS!!!. Someone needs to bring these idiots before a congressional hearing and let them explain to employees and the country how they can DESTROY a good company with their STUPIDITY. While average workers of AIG are sincere in their efforts of taking care of customers needs, this bunch of Greedy Bastards are lining their pockets while the company suffers. I get paid according to my performance, I wish the executives of this company were forced to play by the same rules that AIG’s employees had to. I am proud of the years of service that I have provided to my customers, they have helped my family make a good living. I just wish the executives of this company would have their feet put to the fire for their TOTAL INCOMPENTANCE!!!!
Guess this gives people a really good reason to cheat on their taxes. Everyone who got bailed out should go to federal prison for 20 years. We all paid for a bunch of idiots who put us in this crisis to go on vacation. So they not only screw sub-prime mortgage holders, but they screw the rest of us tax payers as well. Thanks government, for not doing your job… again.
I hope the housekeeping and room service staff decide to have some fun with their toothbrushes and meals.
Well, that seems reasonable to me. I’ll bet they have a very hard, stressful job and need to relax.
This is awesome. We need to get a mob going! I actually have a pitchfork somewheres, so I’m bringing that. Rakes and brooms are not acceptable. Those of you who don’t have torches to pump up and down will be required to hoot and holler in unison with those who do.
See you on the village green.
I am surprised that someone from the Department of Justice hasn’t chimed in yet. What are we paying THEM for?! Someone’s not doing their job.
Thanks CONGRESS. They are WAY MORE AT FAULT than this current administration. Most of them have been there much longer than the current administration and Congress is usually to blame (or thank if that’s ever the case) for things of this magnitude.
I normally don’t advocate vigilante justice but I’m willing to make an exception today. Any chance some folks out there could find out who the actual AIG assclown attendees were, break into their bank accounts and take that 440k back?
Or at least post their phone numbers so we can make them spend their golden parachutes on cell phone bills?
This has all the appearances of being a slap in the face. However, in reality, arrangements and deposits for such large-scale events are most likely made as much as a year in advance. They were probably contractually obligated to follow through with payment whether they went or not – slight consolation, I realize but something that might be a factor.
Remember that in regards to business dealings:
What is legal is not always (business) ethical.
And what is (business) ethical is not always (humanity) moral.
And what is moral is not always legal.
I say that because these folks operate(d) in a moral vacuum usually with capitalism driving all decisions and looking out for ones self as the top plate. That said I bet most of these exec’s didn’t have a clue about the risks their underlings were taking because the execs couldn’t understand the concepts behind the trades, etc. Kind of like the rogue trader who brought down Barings bank in the 1990′s or the French Societe Generale trader who cost billions except the AIG guys were sanctioned by the company…
So everybody has been ranting about this, but what steps can the average Joe actually take to DO something about this? My tax dollars paid for this and I’m not OK with it. I want to do something to help start proceedings against these assholes but I’m not sure what options I have at this point.
There’s nothing gained from whining about it, lets discuss what we can actually DO.
Not only was it my tax dollars that helped pay for this, some of the administration fees that my employer and I pay for my 403(b) went to this, too. Like nonprofit community mental health clinics and their employees have money lying around for this garbage…
Yes, our Congress can sit there and point there fingers at AIG in shame but this is nothing new. Our country is over 10 trillion in debt but I can bet that our political representatives themselves are not eating at Taco Bell to save money. I think we should demand fiscal responsibility from our government as well as the companies that they take over. Now Pelosi is talking about more tax rebates to “stimulate” the economy. Can we really afford to do this again? What AIG did is despicable but there are plenty of people in that boat!
I agree with most of these comments,These guys shouldhave to pay this money back Get fired, serve Prison time,cut out the bonus of all the ceo who are taking any bailout money. bonus is for job well done ,not for a sh*ty job .or running the company in the ground.send these a** H** s to the frikken poor house,like they did the company Make these guys suffer.dam it.