AIG Executives go on $440,000 vacation!

[Jeffros Spec V]

http://www.financialpost.com/most_popular/story.html?id=866284



AIG spent US$440,000 on spa, resort after bailout, lawmakers say

Lorraine Woellert and Erik Holm, Bloomberg Published: Tuesday, October 07, 2008
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Robert Willumstad, left, and Martin Sullivan, right, both former chief executives of American International Group Inc., are sworn in before a hearing of the House Oversight and Government Reform Committee in Washington, D.C., on Tuesday.Jay Mallin/Bloomberg NewsRobert Willumstad, left, and Martin Sullivan, right, both former chief executives of American International Group Inc., are sworn in before a hearing of the House Oversight and Government Reform Committee ...

American International Group Inc. spent US$440,000 on a conference at a California resort less than a week after an US$85-billion government takeover, lawmakers said.

The bill from the St. Regis resort in Monarch Beach included US$23,380 for spa services, according to Representative Henry Waxman, chairman of the House Committee on Oversight and Government Reform. Mr. Waxman led questioning Tuesday of former AIG chief executives Martin Sullivan and Robert Willumstad as Congress probes events that led to federal intervention.

"Average Americans are suffering economically," Mr. Waxman, a California Democrat, said in his opening statement. "Yet less than one 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 St. Regis, located on a bluff overlooking the Pacific Ocean midway between Los Angeles and San Diego, is "devoted to the pursuit of service and elegance," according to its Web site. A "health and wellness" package costs US$600 a night, with a two-night minimum.

The St. Regis expense "seems very inappropriate," Mr. Willumstad told the committee. "I was totally unaware that there was any plan for any conference. Had I been aware of it I would have prevented it from happening."

AIG, once the world's largest insurer, disputed Mr. Waxman's characterization of the conference. Spokesman Nicholas Ashooh said the event had been scheduled a year earlier by AIG's American General life insurance subsidiary as a way to reward independent agents who sell the company's products.

"This is very standard in the industry to reward the top 5 to 10% of top sellers," he said. "In the insurance business, it's as basic as salary as a means to reward performance. It was not AIG executives running away to California."

New York State Insurance Superintendent Eric Dinallo told the committee there may have been some good reasoning behind what he called "profligate" spending. AIG might have been taking steps to stem an exodus of employees, which would have been the "absolute worst thing" that could have happened to the company at the time, he said.

Invoices obtained by Mr. Waxman's committee showed that AIG spent US$139,375.30 on rooms, US$147,301.71 for "banquets," and US$1,488 at the resort's Vogue Salon, which offers manicures, pedicures and hairstyling. The group spent US$6,939.09 on golf, US$2,949 for gratuities, US$5,016.32 at the StoneHill Tavern and US$3,064.71 for in-room dining and the lobby lounge.

The group booked the resort's 3,100-square-foot Presidential Suite for US$1,600 a night for five nights, a discount from the standard rate of US$3,200 a night, a hotel document released by the committee showed. It also paid US$1,075 in "no-show fees."

"Have you heard of anything more outrageous?" said Representative Elijah Cummings, a Maryland Democrat, who plans to seek an investigation of the spending. "They were getting their manicures, their facials, pedicures, massages while the American people were footing the bill."

The group occupied more than 60 rooms. Receipts provided by Mr. Waxman were dated Sept. 22 through Sept. 30. AIG was bailed out on Sept. 16.

[TGilb2007]

That is some total BS. Why is it that I can barely afford gas and food between paychecks, and these people are out and about spending MY (as well as every other tax payer) on some fantasy vacation????

I hope these clowns get strung by the nuts from a tree..... and let some tax payers get some shots in with a baseball bat.

[jdmwill]

so who now thinks the bailout was a great idea?

i believe the tax payers should be given back our money asap. this is corporate greed at its finest.

[CHAOS]

AND NOTHING WILL HAPPEN TO THEM.


****ing insane.

[The Captain]

A day in the life of a corporate exec. This is nothing out of the ordinary.

[Jeffros Spec V]

A day in the life of a corporate exec. This is nothing out of the ordinary.

Except for that one small factor.... you know the one where the government (i.e taxpayers, i.e you and I) had to step in and loan this company $78 billion dollars because if we allowed it to fail this economy would be 70% worse than it is right now and AIG a few weeks later decides to spend $440,000 on vactation.

[The Captain]

85b, and really that was just to give them some time to let them sell off assets for fair market value, not really a bail out.

[SpendOne]

Honestly, what else is new?

[Jeffros Spec V]

85b, and really that was just to give them some time to let them sell off assets for fair market value, not really a bail out.

Not a bailout? I wouldn't want to live in the USA is AIG went under. AIG could have bailed it self out with selling its assets, they didn't need 80 billion to help it do so. If AIG went down it would have pulled everything else down with it cause AIG has it's hands in everybody's pockets.

[The Captain]

Agreed, and they would have went down had the government not given them the loan, but I hate when people call it a bailout. If they were given the money free and clear, then yes it's a bailout, but they have to pay back over 100bil and the government gets a 85% hold. That just seems more like a smart business decision than a bailout.

[Jeffros Spec V]

Agreed, and they would have went down had the government not given them the loan, but I hate when people call it a bailout. If they were given the money free and clear, then yes it's a bailout, but they have to pay back over 100bil and the government gets a 85% hold. That just seems more like a smart business decision than a bailout.

I'll give you that. But if you're balls deep in **** and you take out a two year 80billion dollar loan, how is it going to look when you spend $440,000 a few weeks later on some vacations?


Now that the government holds 85% what has it done to fix problems?

[The Captain]

They put Liddy in charge whose one smart MF'er. But currently they are 85% owners w/ preferred stock, so they don't have voting rights. If that stock gets changed over to common stock then the government would be true voting owners and they would get to make any changes they wanted.

[pearl]

ballinnnnnnn

[Proven]

Call it a government bailout loan.

Obviously all the loop holes were NOT focused on when banging out this deal.

Whoever Owns / Runs AIG needs to get the gasoline splash:devil:

Our government is so messed up it's pathetic. They should of known it would be business as usual for AIG.


And just some off topic - Fuk McCain :mrgreen:

[ThatTealHatch]

these dudes are on point, i would burn everyone if i was in this position too

[R_Rambo]

F*** this county im out new tst location : australia

[SvicksTc]

The was talked about in last nights presidential debate......



Vote Obama 08 :)

[Tiny]

The was talked about in last nights presidential debate......



Vote Obama 08 :)

Especially when Obama is owned by the people that caused the financial crisis in the first place.

The foreclosure rates at this point are at 5.5% of homes in America. In the ‘80’s it was 5.6%. Are we really in bad shape or is fear being used to control the state of things?

I haven’t been affected in the least bit by the economy because I live within my means. So screw you very much to the idiots who took out loans for things they couldn’t afford. Here we go again blaming the government instead of taking the blame on ourselves and giving them the power to control us even more.

Good for AIG for spending $440,000 on a spa day. Why wouldn't they? Did you expect them to repent and see the error of thier ways? Like a child who is given everything and asked for nothing, they are not going to feel remorse.

Vote Obama, so that we can take more money away from the responsible people and give it to the idiots.

[The Captain]

Are we really in bad shape or is fear being used to control the state of things?
x2

The country has been run by fear for a long time now. Media sucks.

[Renegade_]

Especially when Obama is owned by the people that caused the financial crisis in the first place.


Source? And don't say everyone knows it, I need a source.

[Jeffros Spec V]

x2

The country has been run by fear for a long time now. Media sucks.

Media does suck. People need to watch the debates and decipher what each candidate is saying for themselves. There isn't one unbiased reporter, news station etc.... and everything will always come from them with a spin.

[poolmike]

Source? And don't say everyone knows it, I need a source.

Lift rock and crawl out from under it. Listen to some neutral media, you will hear about it.


How 'bout the dude from Lehman Brothers getting knocked out at the gym...that's classic.

[Renegade_]

Lift rock and crawl out from under it. Listen to some neutral media, you will hear about it.
Ok, link me to that neutral media...? They must have a website somewhere....

[Tiny]

Ok, link me to that neutral media...? They must have a website somewhere....

Are you seriously going to take an objective look or are you trying to be combative? 10 secs on a google search:

http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638

[Tiny]

Lift rock and crawl out from under it. Listen to some neutral media, you will hear about it.


How 'bout the dude from Lehman Brothers getting knocked out at the gym...that's classic.

HAHAHA. That was awesome. Good, someone needs to punch him in the face.

[zerioustt]

Especially when Obama is owned by the people that caused the financial crisis in the first place.

The foreclosure rates at this point are at 5.5% of homes in America. In the ‘80’s it was 5.6%. Are we really in bad shape or is fear being used to control the state of things?

I haven’t been affected in the least bit by the economy because I live within my means. So screw you very much to the idiots who took out loans for things they couldn’t afford. Here we go again blaming the government instead of taking the blame on ourselves and giving them the power to control us even more.

Good for AIG for spending $440,000 on a spa day. Why wouldn't they? Did you expect them to repent and see the error of thier ways? Like a child who is given everything and asked for nothing, they are not going to feel remorse.

Vote Obama, so that we can take more money away from the responsible people and give it to the idiots.


egggggzackery.......


this is whats wrong in america in general from people blowing money they dont have and blaming society for their criminal acts. **** anyone who cant take responsibility for themselves. im tired of poor people who say omg woe is me blah blah blah.

i was piss poor in when i was younger now im not..you know why? cause i didnt want to be poor anymore and did anything and everything to make sure myself and future family doesnt grow up like i did.

[poolmike]

Are you seriously going to take an objective look or are you trying to be combative? 10 secs on a google search:

http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638


Google is just way tooo difficult. The gubbment should google things for me for free.

egggggzackery.......


this is whats wrong in america in general from people blowing money they dont have and blaming society for their criminal acts. **** anyone who cant take responsibility for themselves. im tired of poor people who say omg woe is me blah blah blah.

i was piss poor in when i was younger now im not..you know why? cause i didnt want to be poor anymore and did anything and everything to make sure myself and future family doesnt grow up like i did.


The gov't makes it way too easy for everyone to claim 'poor' status and collect money from hardworking taxpayers. I feel that all of the welfare programs need to be shut down to help take out some trash. I could go on about that crap for hours, but I won't.


About the $450,000 vacation, let them have it. They will get whats coming to them sooner or later.

[CHAOS]

About the $450,000 vacation, let them have it. They will get whats coming to them sooner or later.

like the leman bros. ceo who got punched in the face on capitol hill hahahahah

[Tiny]

The gov't makes it way too easy for everyone to claim 'poor' status and collect money from hardworking taxpayers. I feel that all of the welfare programs need to be shut down to help take out some trash. I could go on about that crap for hours, but I won't.


Lol. I think that all of us "hard working" individuals are of the same mind. It's hard not to resent the people that live down the street from me that own 2 new $50K cars, play outside all day with thier $500 remote control cars, run around bragging about the new AR15 they just bought, and flash all types of cash...all the while claiming welfare and using food stamps when they are in line with me at the grocery store? Blah.

Jay you had it right. I have worked for everything I have. I took a job as a line mechanic 4 years ago at $12/hour because I couldn't find anything else at the time. I worked my ass off and now I have a job in management with the same company. It really isn't that hard if you don't mind working.

[zerioustt]

Lol. I think that all of us "hard working" individuals are of the same mind. It's hard not to resent the people that live down the street from me that own 2 new $50K cars, play outside all day with thier $500 remote control cars, run around bragging about the new AR15 they just bought, and flash all types of cash...all the while claiming welfare and using food stamps when they are in line with me at the grocery store? Blah.

Jay you had it right. I have worked for everything I have. I took a job as a line mechanic 4 years ago at $12/hour because I couldn't find anything else at the time. I worked my ass off and now I have a job in management with the same company. It really isn't that hard if you don't mind working.


Hardworking people are few and far between. I see the living beyond their means right here on this website. Kids dropping way too much money into their cars then saying the don't have any money. Omg my car is mad jdm..want to come over my moms house?

People are like jay you make good money why isn't your z on the road. Because at this point I have way more important things to do then drop money into my car. I'm just glad I'm smart with my money and worked my ass off to get the great career I have now. Because when all these people living beyond their means are crying about the economy I'll be sailing past in my honda fit...

[BradC]

Poolmike, Tiny, and Zerioustt.

Amen brothers.

[ASIAN JUL]

Here's the invoice to their vaca:

AIG Vacation Invoice (http://www.thesmokinggun.com/archive/years/2008/1007083aig1.html)

[Soda Popinski]

I personally get my news from http://www.drudgereport.com

usually that has most of the good stories 24 hours before it hits the mainstream where they edit entire stories down to 45 seconds.

[Tiny]

Here's the invoice to their vaca:

AIG Vacation Invoice (http://www.thesmokinggun.com/archive/years/2008/1007083aig1.html)

Back on topic, these guys really crack me up. Now they are billing this as a retreat for thier top sellers.

Not that i'm worried about that, because thats pretty standard in the business, but couldn't we have used a little bit better judgement?