AIG Cancels Second Pricey Hotel Party Due To Outrage

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.
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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