AIG Sucks

Just Our Thoughts On AIG

AIG Executives Help Themselves To $86,000 Hunting Trip

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Just when you thought AIG had learned their lesson, they decided they just weren’t done spending our tax dollars and our government bailout money.

According to the AP and The Consumerist:

The AP is reporting that AIG executives aren’t done partying yet – they took an $86,000 hunting trip even as the company was requesting an additional $37.8 billion loan from the Federal Reserve. Meanwhile, New York attorney general Andrew Cuomo has said that as long as the company continues to be propped up by the taxpayer, he has the power under state business law to review and possibly rescind any inappropriate AIG spending.
In a letter to AIG, Cuomo laid down the law: In the last several months, as AIG was teetering toward bankruptcy, and operating with unreasonably small capital, AIG nevertheless made numerous extraordinary expenditures in the form of executive compensation payments, junkets, and perks for its executives.

For example, in March 2008, ignoring the massive losses AIG was experiencing, the Board awarded its Chief Executive Officer a cash bonus of over $5 million and a golden parachute worth $15 million. Similarly, in February 2008, a top-ranking executive who was largely responsible for AIG’s collapse was terminated, but still permitted by the Board to keep $34 million in bonuses. This same individual apparently continued to receive $1 million a month from the company until recently.

Moreover, even after the taxpayer-funded bailout of AIG, the company paid hundreds of thousands of dollars for luxurious retreats for its executives, including an overseas hunting party and a golf outing. We
believe these expenditures and payments, made in the absence of fair consideration, violated New York law, specifically, N.Y. Debtor & Creditor Law fj 274, which deems such payments to be fraudulent conveyances.

AIG has responded to criticism about the hunting trip with “regret.”

“We regret that this event was not canceled,” said a spokesperson.

AIG has borrowed about $123 billion from the Federal Reserve in the past month.

Written by therecessends

November 13, 2008 at 6:02 pm

Government Bailout = AIG ST. Regis Party

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I’ve been following this story for the last few days and got inspired to see what other people thought about AIG spending “government bailout” money on their St. Regis Party.

Also watch CSPAN:

Similar Posts: AIG Cancels Second Pricey Hotel Party Due To Outrage, AIG Gets $37.8 Billion More – After St. Regis Party, AIG’s St. Regis $440K Bill , After Government Bailout, AIG Spends $440,000 at St. Regis Monarch Beach Resort, CA

Written by therecessends

November 13, 2008 at 5:13 pm

AIG Cancels Second Pricey Hotel Party Due To Outrage

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According to the Consumerist:

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AIG has decided to cancel a second pricey hotel party for their brokers after receiving another loan from the Federal Reserve for $37.8 billion. AIG defended throwing a $400,000 week long bash for its top independent insurance agents and some AIG employees immediately after the bailout – claiming that these events were “standard industry practice” and that they must continue. They announced that they would go ahead with another event at the Half Moon Bay Ritz-Carlton in northern California. 50 AIG employees were  expected to attend.

At least one member of Congress was pleased at the news:

“I am somewhat relieved to hear that AIG has canceled their Ritz-Carlton conference, which was nothing less than a slap in the face of the American people,” said Rep. Elijah Cummings (D-MD).

“I cannot fathom how in the same day-the very same day-that AIG asked the government for another $37.8 billion loan, the company would even consider moving forward with plans to host another large conference at another luxury resort.”

AIG’s spokesperson said that the company will have to pay some cancellation fees, but admitted that the era of fancy conferences and $23,000 spa bills seemed to be over.

“We’ll certainly lose some money in cancellation fees, but it’s just beyond the point of trying to conduct these meetings given the uncertainty that’s taking place,” said Ashooh.
-end-

I’m going to clear the air. AIG and some people are saying the money that they used on the St. Regis party was not tax-payers money. It could be true. Even if it wasn’t our money, it doesn’t look good on AIG’s part. They shouldn’t be spent extravagantly. Why not the Best Western? Or Motel 6? Does it have to be the St. Regis and the Ritz?
In such unique economic times, the last thing the American public needs to see is our money going to a company whose spending it on lavish retreats. Whatever “their” money was, it was OUR money. We paid
for their trip, regardless if it came from taxes. We’re all in it together. Let’s just all get along and be responsible.

Read: Outrage Leads AIG To Cancel Second Luxury Retreat, AIG Gets $37.8 Billion More – After St. Regis Party, AIG’s St. Regis $440K Bill, After Government Bailout, AIG Spends $440,000 at St. Regis Monarch Beach Resort, CA

Written by therecessends

November 13, 2008 at 5:04 pm

AIG Gets $37.8 Billion More – After St. Regis Party

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Photo Source: aadpa.org

Just when you thought the AIG St. Regis Party story couldn’t get anymore confusing and worse, it did.

Straight from the OC Register:
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AIG, the insurance company bailed out with $85 billion in taxpayer funds, is getting another $37.8 billion infusion from the Federal Reserve to help cover mounting losses, the AP reports.

As of Sept. 30, AIG had drawn $61 billion on the $85 billion credit facility, of which about $54 billion has gone toward its securities lending and AIG’s financial products area, the AP reports.

The rest of the money has been for other liquidity needs amid an “unprecedented” freezing of credit markets, Chief Executive Edward Liddy said last week.

The Register’s O.C. Watchdog blog broke the story that employees of an AIG subsidiary – and some of their best customers – who blew more than $440,000 at a retreat at the St. Regis Resort Monarch Beach last  month, days after the record $85 billion bailout was approved. AIG has been blasted in Congress for its O.C. bash.

Liddy wrote to Treasury Secretary Henry Paulson on Wednesday to say that most of the company’s 100 guests at the St. Regis retreat weren’t  executives – and they had planned the retreat before the bailout.
-End-

Read: Letter Libby Wrote To Paulson

Similar Post: AIG’s St. Regis $440K Bill, After Government Bailout, AIG Spends $440,000 at St. Regis Monarch Beach Resort, CA

Written by therecessends

November 13, 2008 at 5:01 pm

AIG’s St. Regis $440K Bill

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Here’s the St. Regis Bill:

Photo Source: The Smoking Gun

  • $147,302 for banquets
  • $139,375 on rooms
  • $23,380 for spa services
  • $6,939 for golf
  • $5,016 at the Stonehill Tavern
  • $3,065 for in-room dining and the lobby lounge
  • $2,949 for gratuities
  • $1,901 at the Monarch Bayclub
  • $1,488 at the resort’s Vogue Salon

Read: AIG Gets $37.8 Billion More–After St. Regis Party

Written by therecessends

November 13, 2008 at 4:52 pm

After Government Bailout, AIG Spends $440,000 at St. Regis Monarch Beach Resort, CA

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Photo Source: HeatherBullard

I’ve been following the government bailout and how it may affect consumers, retailers, and the American public as a whole. The banks are suffering, the mortgage industry has tanked, the housing market crashed and many Americans have been left with homes in foreclosure and increased taxes to boot. So much for the IRS Stimulus huh? Seems like the only thing it boosted was our economic meltdown.

So, I’m a tax-paying citizen and, like everyone else, I like to be savvy especially in these unique economic times. When the government started bailing out companies, I believed it would help the American public in the long run. But, when I saw on the Orange County Register report that AIG had just spent over $400,000 for an executive party at the posh St. Regis Monarch Beach Resort, CA. I couldn’t help but question what other companies are doing with our money, money that was suppose to help the companies, help this country, and help us. This is not an attack on the government, its more an attack on companies who simply have no regard or concern about their responsibility.

Here’s the article from the OC Register:

-Begin-
Less than two weeks after Uncle Sam gave American International Group (AIG) an $85 billion loan – staving off financial collapse – execs from one of its insurance subsidiaries, AIG American General, gathered
for a conference at the uber-swank St. Regis Monarch Beach Resort, billed as “California’s only Mobil Travel Guide Five-Star Resort,” where ocean-view rooms start at $565 a night and “world class luxury” is the rule.

On Friday, before the presidential debate got under way, caterers for the St. Regis were setting up dozens of tables on the grounds of Mission San Juan Capistrano for AIG American General’s sumptuous off-site dinner. Tables were draped with soft Tuscan-gold tablecloths that cascaded to the grass; elegant fresh flower centerpieces graced each table; and what appeared to be fine crystal stemware, at least from a distance, glistened in the fading light.

Workers set up a lengthy bar stocked with bottles of liquor. A half-dozen tall space heaters stood sentinel in case the evening turned cool. There was a large center stage with lighting and a sound system, and once the sun went down, the whole scene took on a magical patina as tiny white lights twinkled in the trees.

For more of the article: AIG subsidiary parties in style in OC, two weeks after bailout.

-end-

Here’s the AIG’s St. Regis blowout bill: $443,344 broken down: (Copy of the St. Regis Bill)
AIG American General spent:

  • $147,302 for banquets
  • $139,375 on rooms
  • $23,380 for spa services
  • $6,939 for golf
  • $5,016 at the Stonehill Tavern
  • $3,065 for in-room dining and the lobby lounge
  • $2,949 for gratuities
  • $1,901 at the Monarch Bayclub
  • $1,488 at the resort’s Vogue Salon

So, folks, there you have it. Our hard-earned money at work. Wait, our hard earned money at play, but we don’t get to reap the benefits. It’s for the executives – you know, the same guys who performed poorly, who we entrusted with our money.

You know, I don’t even have a closing line. No two words can even explain it.

What do you think?

Update:

White House: AIG execs’ $440,000 retreat ‘despicable’

“The White House said on Wednesday it was “despicable” that American International Group Inc. executives spent hundreds of thousands of dollars on a posh California retreat just days after getting a federal bailout.

Lawmakers investigating the meltdown of AIG said the retreat didn’t include anyone from the financial

“It’s pretty despicable,” White House press secretary Dana Perino said.” products division that nearly drove the company under, but they were still enraged that executives of AIG’s main U.S. life insurance subsidiary spent $440,000 on the retreat, complete with spa treatments, banquets and golf outings.”

Written by therecessends

November 13, 2008 at 4:51 pm

Why I Started “AIG Sucks”

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My name is Austin, and I’ve been following the AIG Government Bailout, since they first hit the news, with their St. Regis Party. As for many Americans, I was a little mad, to say the very least. I’m having trouble believing AIG’s intentions, and I can’t grasp and believe how much our tax dollars has gone to AIG. Even after the letter was written to defend the Arizona event and after the Larry King interview, I find myself finding it difficult to believe the CEO and the executive team.

This blog is in no way trying to attack the employees, the executive, or the CEO. It’s simply our expression to the situation.

This will be an open forum for the discussion of AIG. Guest are able to post their thoughts and comment. Employees and AIG executives are welcome to share their thoughts on here as well. The title of the blog is “AIG Sucks.” I’d love to change the title, eventually.

So, there you have it, in a nutshell.

Written by therecessends

November 13, 2008 at 4:43 pm

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