After The Bailout AIG Bought Themselves A $440,000 "Retreat" At A California Resort
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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Comments:
There are no words to describe this.
Sigh.... less than a week.
Who feels good about the $700 billion dollar bailout now?
And you are surprised by this?
I'm not and I'm sure no one else will be either.
The word of the day is: OVERSIGHT
This is why I love people who complain about the way "big government" wastes our money. Big business is pretty good at wasting cash, too.
Burn these people at the stake. They do not deserve to continue living.
So who do we fire? Do we get to fire someone? I pay taxes and I want to see some heads roll.
Then they can go back to making me some damn money.
Shouldn't there be a clause in the contract with them that if they perform such a violation of SIMPLE ETHICS that the company should be deemed ineligible to receive any help at all?
Time to clean the management house... Now. We have 80% ownership, so I say FIRE everyone who went.
Amazing how greedy, selfish, and stupid people can be.
@shini:
Fire? No. These people need to go to prison. Do not pass "Go", do not collect $200.
Unless by "fire" you meant "immolation". That would be okay too.
I feel they deserve Jail time for this. I dont mean fancy jail either. I mean Federal Prison. Perhaps if their was a real punishment for what they are doing they would stop once and for all.
My vote has been cast. Get it done Gov.
I propose that we make golden parachutes literal. From now on, fired executives of failing companies get hurled out of an airplane with a parachute made of gold.
I am more sickened by the fact that I am not at all surprised. We knew this would happen.
I concur with everyone else. The company may be too big to fail, but its people certainly aren't too big to fire.
Why don't we just bill it back to them? Does anybody have pictures of those who organized this little outing? Let's out 'em...
screw all you selfish rich bastards who dont care for anyone but yourself!
they should gather them all right in front of the their office building and get stoned by every tax payer!!! *just a rant*
and to you stupid, idiotic and outta touch govmnt, hope you're happy....explain this to the tax payers!
Who wants to bet no one goes to jail?
Time to fake your own deaths and head to Argentine, AIG execs. It's that or up against the wall, because I'm telling you the American taxpayer has farking HAD IT!
I hope someone punches them too.
I'm not trying to vouch for their actions because I'm certain they are all self-serving egotists but you have to imagine a weeklong resort had to be planned further in advance than "less than a week". Still a poor use of money but all companies waste money. Just saying.
Looks like an EECB of epic proportions is in order.
Have we got some executive contact info for these guys?
@MercuryPDX: I didn't feel good about it when the bailout happened in the first place. Bush will be ejected shortly; those who voted for this horror in Congress need to follow him out. Congress is equally culpable as these wretched CEOs since they didn't do anything about Fannie Mae/Freddie Mac, which caused this mess in the first place, and they can't claim ignorance. There are absolutely no winners here; not the CEOs, not Congress, and certainly not the citizenry.
Speaking of the CEOs -- is this the kind of ethics/behavior being taught at Wharton/Harvard Business School? Because it's not just these guys; the executives at my company cry poverty while they go on golf outings on the company dime and drive company BMWs and Escalades with their mileage paid for.
I think everyone should get luxury spa vacations!
Consumerist engaging in class warfare. Read that on various right-wing blogs. Must be true.
@RandomHookup: This mess was largely caused by the government, underwriting mortgages by people who had no way of paying, in the name of "fairness". The banks/mortgage companies just followed suit thinking the free money would keep flowing.
@RandomHookup: True, but this a perfect storm of wasteful government spending AND corporate greed.
Now THIS is something conservatives and liberals can rally against. Each of their least biggest complaints!
Why would they be sent to jail for this? What purpose does that serve? For one, I'm sure this trip/retreat was likely booked well before they got their bailout. Even if it was booked after, the suggestion that they be sent to jail is simply absurd.
@cjones27: "least biggest"? Who are you?
Meant to type "least favorite qualities." Not that it's much better, but still.
I'm at the point where I think hanging a few to encourage the others is a good idea.
Yeah, and it takes just under five minutes for the chair of the organizing committee to glance at the financial section of the newspaper, pick up the phone and CANCEL the week long resort.
Hope it was a nice week- nice enough to make up for the next twenty years behind bars. Enjoy fellas!
Fascism - Washington is in bed with the Corporations and stealing our money. Bedtime for Democracy.
Besides, this is stupid.
440K is ONLY .000005 percent of 85B. Swatting at flies. Wake up already!
@ceez: "they should gather them all right in front of the their office building and get stoned by every tax payer!!! *just a rant*"
I'm not sure the taxpayers funding enough weed for these guys would fly either.
I urge everyone to write the congressman and senator regarding this issue, as well as the Speaker of the House. Also, can we get some contact info for corporate AIG so I can email them and ask how their vacation was? Please Consumerist?
This trip had to have been paid for in advance long ago.
That said, it would have been far more appropriate to cancel the trip. get a partial refund if possible, and get to work.
I say we all tap into our Native American roots and take it all back...
I say we do a chargeback! Get our money back and make them pay for their own trips! Let's fine them for every stupid mistake they've made. Not just AIG, ALL of them. Congress, all big business.. the whole lot of them! If we mess up our finances, we can't just say, "give me more, I promise I'll do it right next time". How do they get away with it? The $15 MILLION dollar golden parachute? UHHHM WHY? Let's cut the strings on that bad boy, take the money back. Only $685 million more to go!
Not defending these actions, but I suspect this vacation package was already scheduled (and paid for) well before Uncle's bailout.
The smart employees (upper management invited to the retreat) will have stayed at home rather than going to the retreat.
I say keep the smart employees and fire the rest.
@atypicalxian: And what does that have to do with anything? I wasn't talking about cause and effect.
Everyone claims that the private sector does things so much better, when they sure know how to waste money, too. I'd say it's about a toss-up, but government waste has more visibility.
I don't like this company at all. A monstrosity in need of a little shortening. It is important to understand that the Insurance branch of AIG is separate from the investment side. They are legally financially separated from one another. The Insurance branch did not need the bail out and still turns a profit, similarly the investment branch can not legally borrow money from the insurance branch. If NBC goes out of business, would GE stop producing light bulbs?
This just wrong , the exec should pay it back out of there own pockets.
Despicable.