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 !)