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#1 AIG Execs blow $440,000 of Bailout cash10-09-2008, 01:08 AM
AIG Executives Blow $440,000 After Getting Bailout
If you'd just gotten a government bailout, you might be tempted to hold a retreat at a nice California hotel -- and that's exactly what American International Group (AIG) employees did.
The committee on Oversight and Government Reform held a hearing on Tuesday at 10:00 a.m. Eastern time. to address and examine downfall of AIG, the world’s largest insurance company. The committee planned to discuss the financial excesses and regulatory mistakes that led to AIG’s government bailout.
One of the items discussed was AIG’s expenditure of $440,000 for a corporate retreat at the St. Regis Monarch Beach resort in Dana Point, Calif., about midway between Los Angeles and San Diego. These funds were spent on Sept. 22, a week after the Federal Reserve extended an $85 billion emergency loan to AIG to keep it from going bankrupt due to insurance liabilities.
The St. Regis Monarch Beach resort is described on its Web site as “a landmark resort of legendary proportions.”
Last edited by bijou; 10-09-2008 at 04:31 AM. Reason: To comply with Breaking News rules - please only post an extract"Don't vote. It only encourages the bastards." -PJ O'Roarke
10-09-2008, 01:18 AM
This story hit me today when AIG announced they need another 38 Billion from the Government on top of the 85 Billion they already got. Wha???
These rich fucks don't even give a crap, nothing changed and they're blowing my tax dollars on spa & hotel packages? I can't afford to take my wife to a nice hotel vacation and these assholes are blowing cash like this?
Now I understand why the french chopped off Marie Antoinette's head. Why aren't these rich assholes in jail? Better yet, lock & load America. I'll lead the first rifle team if ya'll are with me...I doubt God will be too angry that some scum like this gets what they deserve."Don't vote. It only encourages the bastards." -PJ O'Roarke
10-09-2008, 05:09 AM
Boy am I glad I got my money out of the old 401k I had with AIG about a week before all of the shenanegans went down.
10-09-2008, 06:16 AM
:eek: St. Regis Monarch Beach is one of the most expensive resorts in the area. The website isn't lying. I thought about having my wedding there until I found out how much it was going to cost us. :eek:
It is not uncommon for big companies to do these things for their executives, BUT this wasn't their money to spend on this crap. :mad: You have to wonder what the hell these people were thinking. What a bunch of scumbags.
10-09-2008, 01:28 PM
Boortz brought up a different side of the story. A) the company actually throwing the shindig is an insurance subsidiary of AIG that has been turning a profit 2) it was planned well ahead of the collapse and had a $400,000 deposit already paid, again well ahead of the bailout, C) it's a common business practice to encourage the indpendant insurance agents to push the company products, which is a big part of how AIG will be making the money they are supposed to pay back for this bailout (yeah, I'll believe it after the check clears the bank, but it's a vaild point) and 4) Neal said one ought to go talk to the cooks, belhops, caddies, housekeepers, ect and tell them that they should not have gotten paid that weekend, or gotten the tips they did from those attending ect.
It looks ugly, no doubt, to get bailout money and then throw a party, but all these points make it real hard to just stay angry about the matter.
For some odd reason, this bit isn't on Neal's show notes yet, hopefully he'll update it.Romans 6:18 You have been set free from sin and have become slaves to righteousness.
Differences between Obama and God: God's plan to save us is actually written down for people to read. Rush Limbaugh.
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10-10-2008, 01:10 AM
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I work in agent compensation for an insurance company. So I am biased, but...
This wasn't a "shindig" for executives. Everythign I've read on the subject leads me to believe this was a reward for their top selling independent agents - the people that actually bring money into the company.
The vacation and other rewards are actually part of the compensation structure (as determined by the actuaries) insurance companies use. In other words if there weren't rewards such as these, AIG would have most likely been paying more upfront commission to the agent's.
The money would have been gone either way, but the motivation to the agent's to push an AIG policy would have been less. The agent's would have begun pushing other companies policies to qualify for their get-aways and rewards, while the AIG polcies would be sitting.
Now is probably the time AIG needs to begin some very creative compensation. I imagine it's very difficult for an agent to convince a cilent to take an AIG polciy now-a-days, and extra motivation for the agent 9in the forms of vacations, etc) never hurts.
IMO the polticians know this, but they see the opportunity to score cheap political points with citizens that don't like the bailout in the first place (me included).
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