Oct. 8 (Bloomberg) — American International Group Inc., castigated by the White House, Congress and Barack Obama for hosting a $440,000 conference days after an $85 billion federal bailout, plans to hold another gathering for brokers next week.
The event, at the Ritz-Carlton in California’s Half Moon Bay, aims to “motivate and educate” about 150 independent agents who sell AIG coverage to high-end clients, said spokesman Nicholas Ashooh. White House spokeswoman Dana Perino today called “despicable” expenses from the first gathering, a weeklong conference last month at the St. Regis Resort in Monarch Beach. Those costs included $23,000 for spa services, according to Representative Henry Waxman, chairman of the Oversight and Government Reform Committee.
AIG considered buying advertisements to explain its position, only to be told by public relations consultant George Sard that it would be “a really bad idea.”
“To spend the taxpayer’s money on an expensive ad campaign to apologize for how you used taxpayer money leaves you open to further attacks,” Sard wrote in an e-mail to Ashooh. Sard, chief executive officer of New York-based Sard Verbinnen & Co., said the message was a private e-mail mistakenly sent to Bloomberg and wasn’t intended to be a public statement. About 50 AIG employees will also attend the Half Moon Bay meeting. Ashooh said he didn’t know the cost of the event or how long it would last. Next week’s meeting has more of an educational component than the St. Regis meeting, he said.
Maybe we should boycott hotels who host these parasites. As far as I’m concerned they are aiding and abetting criminals.
Update: ABC News: Outrage Leads AIG To Cancel Second Luxury Retreat
Hmmm, Ritz- Carlton, Half Moon Bay, heads up everybody. Get the Pitchforks and torches ready NOW.
“Maybe we should boycott hotels who host these parasites. As far as I’m concerned they are aiding and abetting criminals.”
Well, next time I pack up the family and hop in the Chevy to go to California I’ll just not stay there.
But, that’s OK, our elected reps will appreciate the campaign donations from these con artists.
If a crack opens up and the earth swallows these people, I hereby promise to reconsider my long held disbelief in an active Supreme Being capable and willing to dispense justice.
Big Busines = Big Bucks = Big Government = Big Corruption. See a pattern here? Its all big, Big, BIG!!!!
Just like the BIG class warfare that should ensue and the BIG turnover in Congress that should occur.
Vote all incumbents out. Its the only thing that will do.
Actually this party has been cancelled.
And here is the AIG response to the response of the first party:
The Honorable Henry M. Paulson, Jr.
Secretary of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
Dear Secretary Paulson:
I am writing to clarify an issue that was discussed at a hearing held yesterday by the House
Committee on Oversight and Government Reform. At the hearing, a recent business event held
by an AIG subsidiary was mischaracterized as an “Executive Retreat” held right after receiving
the $85 billion loan credit facility from the New York Fed.
The event in question was held by one of AIG’s insurance subsidiaries for independent life
insurance agents – not for AIG employees – who were top business producers for the company.
The vast majority of the attendees were independent business people and their guests, not AIG
employees. Indeed, of the more than 100 attendees, only 10 were employees of one of our
insurance subsidiaries who attended to represent their company. Not a single corporate executive
from AIG headquarters attended.
While this sort of gathering has been standard practice in our industry for many years and was
planned many months before the Federal Reserve’s loan to AIG, we understand that our company
is now facing very different challenges – and that we owe our employees and the American
public new standards and approaches. Let me assure you that we are reevaluating the costs of all
aspects of our operations in light of the new circumstances in which we are all operating.
Mr. Secretary, I want you to know that AIG is focused on doing what is necessary to address our
capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the
meantime, our insurance businesses continue to operate normally and satisfy the needs of our
policy holders.
Sincerely,
(and it’s signed by) Edward M. Liddy
Not to sound like I’m defending AIG, but in most cases the bulk of expenses for shindigs like this are paid far in advance with little hope for refund. But even then, they probably could’ve toned some of it down for appearances sake.
#5
“Mr. Secretary, I want you to know that AIG is focused on doing what is necessary to address our
capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the
meantime, our insurance businesses continue to operate normally and satisfy the needs of our
policy holders.
Sincerely,
(and it’s signed by) Edward M. Liddy”
PS – We need more money.
So it’s not really a party for themselves, but for their best moneymakers? SHould those guys not be rewarded?
They cancelled it, or so the local SF TV station just announced.
AIG said it was a sales meeting for their salespeople.
It’s tough all over! I guess I’ll have to cancel that class on the cruise ship I was planning!
Umm… This is a surprise?
Trickle-down economics: Give rich people your money and let them pee on you.
It must of been quite a party for years so much that like union workers they think that it is a way of life and “is coming to them”
They don’t get it but the party is over
Or is it ?
What is amazing how none of the two candidates have the guts to say a word
You can say what you want about Bill Oreilly yet he took on that .. Barney Franks in a way that none of these pussy footing presidential candidates are – do they think Americans are stupid and brainwashed – guess to
In addition H, Clinton was no different
What did she do , what did she stand for in her years of “sitting in the senate”
All much ado about nothing and of little substance
To some degree Americans get what they deserve
Like Harry said, If you want to live like a Republican, you better vote like a Democrat. What I find constantly amazing is that most of the complainers about BIG politics support it with their votes for the Retardlickans. Emphasis on retard. Emphasis on lick. Emphasize on con. You deserve what you get, you morons.
singing like the swedish chef from the muppets…
pork pork pork….
$700+ billion with all that pork and everyone gets a little upset over a couple of lavash parties… come on!!!! what were you really expecting???
Basically, the way this appears to me, is that the government gave a ton of money to prop up part of AIG that was going to pull down the whole company. Now the government, along with the press and a bunch of morons who never sold anything that didn’t ring up on a cash register, are telling AIG how to run the divisions that actually make money. Based on the news coverage and legislator response, no independent sales rep is going to work with AIG period.
In general, the problems with financial institutions is limited to relatively minor operations that turned out to have major liabilities. Like Wachovia buying $1 worth sub-prime mortgages for $24 dollars – times 1 billion.
The reason the markets continue to fall is that it is becoming increasingly apparent that the US government will screw up the bail-out and put all of these companies out of business anyway.
#15 Redwolf said
“Now the government, along with the press and a bunch of morons who never sold anything that didn’t ring up on a cash register, are telling AIG how to run the divisions that actually make money.”
AIG took the money (and wants more).
“The reason the markets continue to fall is that it is becoming increasingly apparent that the US government will screw up the bail-out and put all of these companies out of business anyway.”
And this is a surprise to someone? But some will blame the Republicans (who deserve it) and give a pass to the Democrats (who also deserve it).
#11 – So they get the golden parachute and we get the golden shower.. Nice!
Friggin US congress decides to compensate these criminals, and because of it pigs worldwide are scrambling for their share. Governments are paying off these bastards in a proteccion scheme at a global scale. Soon the economy will be completely broken on a world scale, and the anti-christ will offer the solution. A number which will identify you, will be intransferable, and will be necessary for any ‘legal’ transaction.
#7 and #11—good ones.
I’m afraid, though, that these shenanigans and those of the politicos over the last couple of weeks are really compost for the home-grown terrorists.
When will they punish Barack Obama and the Democrats for blocking reforms? Oh wait…
FYI, this place is not at Half Moon Bay. The St. Regis is at Monarch Beach in Dana Point. It is the south side of Orange County, but I am sure the company still made a stupid move by going there and going crazy.
I’m in favor of a company being proactive in improving the moral of its employees. If a spa visit and party leads to a happier and more productive work force then it is worthwhile.
Damn, I thought I was bad when I threw parties with my Unemployment checks.
120 billion, I’d go on a bender too.
I am sure some Congress people are vacationing on some island with their lobbyists too. If anyone had any doubt that big business runs the US government. Those doubts should be gone.
So; it sounds like the fat cats got their party, but the grunts got screwed.