by Damozel | Deb told us a few days ago how AIG, having quickly run through the first bailout, needs another shot of lovely money from taxpayers.. She also talked about AIG executives' particular methods of redistributing shareholder wealth to themselves.
Since then, the American public---including Barack Obama---have (apparently to the surprise of AIG) been surprisingly indignant out of the $440,000 in petty cash that AIG recently spent on throwing a big party at an exclusive resort?
AIG seems puzzled. Did we really mean, when we doled out a huge chunk of money, that it had to be spent on things other than expensive luxuries to thank employees (ones who had nothing to do with AIG's need for a massive infusion of taxpayer dollars) for a job well done?
Apparently, AIG feels that Obama and everyone else who got angry missed "an important distinction": the ones who participated in the delightful week-long luxury vacation were from the clean, upright insurance side of the business rather than the financial products division (which is the reason the company's on the dole. (NPR) Did we intend to punish the whole company?
An AIG spokesman told the Post the gathering was planned before the bailout as a reward for life insurance agents and that fewer than 10 executives were present. The AIG group ran up a $23,000 spa services bill. (The Raw Story)
Fewer than 10 executives! Oh well then. I mean, it was less than half a million for 70 of the company's top performers---not even $7000 per head! Wouldn't you call that a bargain?
Anyway, how do we expect them to get back on their feet if everyone there feels all bummed out??
Apparently the powers that be at AIG are all under 25 years old. When we give them the next big chunk of public funds we need to explain things to them a little more clearly.
See, holding a retreat as a reward for your life insurance agents
after you've taken a lot of money from the government is a bit like
using the money you begged from the taxpayers to pay for your cancer surgery to throw yourself a gala birthday party. Never mind
whether you deserve a big party or whether you'd promised it to
yourself.
It just looks bad, you know?
Henry Waxman, Chair of the House Oversight and Government reform Committee, and Barack Obama didn't see it that way.
The insurance giant was rescued in September with an $85 billion federal bailout, and last week about 70 of the company's top performers were rewarded for their work with a week's stay at the posh St. Regis Resort in Monarch Beach, Calif., where the tab was $440,000, The Washington Post reported Wednesday.
During a Tuesday hearing....Henry Waxman, D-Calif., said, "Less than a week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation."(The Raw Story)
Meanwhile, the government is preparing to provide AIG with "$37.8 billion in additional liquidity." (Yahoo)
Emptywheel doesn't seem to care who got to enjoy the nearly half a million dollars in taxpayer dollars.
Yeah baby. The last time the US Government gave AIG a wad of cash infusion, this is what happened:
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, Congressional investigators revealed today....
Just so you know what kind of style these high flying, hard working, AIG Execs are accustomed to.... :
$200,000 for Rooms
$150,000 for Catered Banquets
$7,000 for Golf
$23,380 for Spa Treatments (These are stressful times for AIG executives, they needed facials.)
$1,400 at the Hotel Salon. (Emptywheel)
An AIG spokesman told the Post the gathering was planned before the bailout
Or, as Ken at The Seventh Sense puts it: "Seriously, these people need to be bitch-slapped a little."
PS. Dana Perrino and the President feel your outrage!
Economist DeLong Says, "McCain Mortgage Plan Worse than I Imagined"
Brokaw on Social Security; Palin on McCain's Plans for Social Security & Health Care Reform
AIG Execs Re-Distributed Shareholder Wealth to Themselves
Lehman Execs Re-Distributed Billions in Shareholder Wealth to Themselves
This gets me so mad! AIG is outrageous.
Sign this petition to force AIG to pay back the treasury for their retreat.
http://go.care2.com/17225761
Posted by: Jen K | October 10, 2008 at 02:13 PM