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AIG subsidiary parties in style in OC, two weeks after bailout
October 2nd, 2008, 7:00 am · 73 Comments · posted by Teri Sforza, Register staff writer
(UPDATE! See details of the bill - for $443,344 - here )
(UPDATE! See Obama’s comments on the party - “Fire the scoundrels! - from the debate)
Financial crisis? What financial crisis?
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 centerpiece 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.
The Watchdog - and the Outraged Taxpayer who alerted us to the situation - understand that corporate events such as these are planned many months in advance. I mean, really. Who could have known in the spring that there’d be Financial Armageddon in the fall?
But still. “The inappropriateness and the excessiveness just blew us away,” said the Outraged Taxpayer, who went to the Mission Friday to pray in the chapel. “It’s outrageous. In very poor taste. Over the top.”
AIG says it’s not what it seems.
The St. Regis conference included recognition for vital independent agents who distribute AIG American General’s products - insurance for individuals and businesses. AIG American General - a subsidiary of parent AIG - is in much, much better financial shape than AIG itself. ”It’s one of our viable businesses,” said AIG spokesman Joseph Norton. “They’re fully capitalized. They’re fine. It wasn’t a corporate kind of thing.”
Appearance, though, is powerful.
“When people hear things like this, it makes it difficult to sell people on a bailout plan,” said Tara
Setmayer, communications director for Congressman Dana Rohrabacher, who opposes a bailout. “Of course the events are planned in advance, but from a PR perspective, it doesn’t go over well.”
Like every congressional office, Rohrabacher’s was inundated with outraged calls and emails opposing a bailout. ”No one is bailing us out!” Average Joes were saying. “Why should we bail out those Wall Street fat cats?”
(Suggestion to those crafting the next bailout - er, ”rescue’ - bill: Consider a cap on expenses as well as executive compensation?)
More Watchdog:
- AIG’s St. Regis blowout bill: $443,344
- Prez didn’t push for bailout so execs could get facials
- Obama on AIG’s $400,000 party: ‘Fire the scoundrels!’
- Behind the AIG party: A look at the St. Regis
- CalOptima’s piggy bank shrinks by, gulp, $129 million
- Is incumbent a carpetbagger? Challenger sics DA on the case
- Management company fears violence from 73-year-old woman
- Kill rate soars at county animal shelter; adoptions decline
- Water district flush with cash, to the tune of $1 billion
- Assistant sheriff retires making more than Carona
More meltdown coverage:
- Senate passed rescue bill 74-25. What do you think?
- Chapman’s Adibi sees bailout as necessary evil
- Tight credit, financial chaos slam auto sales
- Gov’t launches mortgage aid program
- Did political donations swing bailout vote?
- Are four big lenders enough?
- O.C. Realtors say bailout key to restoring housing market
October 2nd, 2008 at 7:42 am
My initial reaction was one of disgust…
However, from past experience, these type of incentive programs for independent top producers in numerous industries are actually planned and budgeted for more than a year in advance. They are not only an incentive, but an obligation, once the “program” is rolled out as that year’s incentive. Independent insurance agents are not “Wall Street” fat cats, they’re like small business owners, in a sense. And, as noted, this was from a profitable subsidiary.
October 2nd, 2008 at 7:59 am
Is this somehow supposed to surprise us?
Just wait to see the party they’ll be able to throw with $812 Billion tax dollars. My disgust with the whole situation is beyond measure.
October 2nd, 2008 at 8:05 am
I don’t care how long ago this “party” was planned, it should have been canceled. Inappropriate, to say the very least.
October 2nd, 2008 at 8:08 am
Could you get the names of the AIG execs who took part in this extravaganza? Names would make this story much more interesting for all of us. Thanks.
October 2nd, 2008 at 8:41 am
Its not what it looks like, you people need to put your thinking caps on and stop being driven by appearances and your emotions.
October 2nd, 2008 at 8:50 am
I agree on the names. Without names this doesn’t tell us much that we don’t already know. How many of the attendees were OC folks? Names, please.
October 2nd, 2008 at 8:55 am
O.C has long been a “SAFE HARBOR” for Racketeer InfluencedCorrupt Organizations!
So, what’s new?
October 2nd, 2008 at 9:04 am
Just like those deadbeat homeowners who take all the appliances out of the house and take a sledgehammer to the drywall on foreclosure day. Extremely BAD FORM!!!!!!
October 2nd, 2008 at 9:10 am
NOW JUST THINK IF THEY THREW THIS KIND OF PARTY NOW DURING THESE TIMES OF A BAILOUT.
WHAT KINDA PARTY DID THEY HAVE WHEN THINGS WERE REALLY GOOD!!!!!
WOW THIS IS UNREAL AND SHOULD NOT BE TOLERATED..
SO WHAT IF PLANNED IN ADVANCE… IM SURE PLENTY PEOPLE PLANNED A VACATION THIS YEAR TOO AND PROLLY HAD TO CANCEL BECAUSE THEIR SITUATION FINANCIALLY HAS CHANGED…… POOR EXCUSE FOR THIS
PLEASE AIG GIVE ME BACK MY SHARE OF THE BAILOUT MONEY WE GAVE U FATCATS
October 2nd, 2008 at 9:20 am
Obviously no amount of money can buy “common sense” for the executives of AIG… seriously, I don’t care how long it’s been planned… cancel it!
Disgusting, arrogant, ignorant… these are only a few of the adjectives that describe this behaviour.
I strongly encourgae everyone to send a copy of this article to your Senator and Representatives.
October 2nd, 2008 at 9:25 am
formerAiGemployee Says:
It’s not what it looks like. . .
It is exactly what it looks like. Financial services previously was a conservative profession and the sales people were actually educated in finance. Now they are often purely trained in prospecting and closing and lead around by a carrot to get to the big party. This is exactly what created the mortgage and insurance mess that has lead to the collapse of the credit markets.
The incentive systems obviously have broken down and created so much moral hazard that many sales people pushed for deals that showed no fiduciary responsibility. In fact, most of them could not even define fiduciary.
So yes, it it exactly what it looks like. If my representative in congress votes for this bailout, I’ll be sure to let him know how I feel during his next election - disgusted!
October 2nd, 2008 at 9:58 am
If you or I were fired for incompetence, we would be given a box to put our belonging in and ushered out the front door of the company we used to work for. BUT NO, if you are a CEO that has destroyed a company, you walk out the door richer than you were coming into the company. OUTRAGEOUS!!! Then you have the audacity to throw an over-the-top party after you have been bailed out by the taxpayers. PLANNED WEEKS IN ADVANCE - HOW ABOUT SENDING NOTICES TO ALL ATTENDEES SAYING WE ARE SORRY BUT WE BANKRUPTED THE COMPANY AND HAVE TO CANCEL THE PARTY. When is the public going to say, enough is enough? These GREEDY buzzard have to GO. Sadly, the CEO’s are in a close-knit community, where they destroy one company and then get hired as a CEO of another company to do it all over again. IT IS TRULY DISGUSTING AND UTTERLY INSAME THAT THIS CONTINUES!!!
October 2nd, 2008 at 10:14 am
WoW!! You people really need to get a life. If you want to live in a Socialist/Communist country, move to Cuba. Everybody is treated the same there… poorly!! This party has absolutely nothing to do with what is going on!! OCR… are you kidding me???
“Tables were draped with soft Tuscan-gold tablecloths that cascaded to the grass; elegant fresh flower centerpiece graced each table; and what appeared to be fine crystal stemware, at least from a distance, glistened in the fading light.”
This is reporting? You report what you THINK you see in the dark?? It’s reporting like this that causes people to freak-out and panic. DO YOUR HOMEWORK AND WRITE A REAL STORY!!!!!!!!!
October 2nd, 2008 at 10:18 am
It was an Obama fund drive they can’t give out the name’s it would upset Obama and Biden and all the rest of the liberals in Washington.
October 2nd, 2008 at 10:23 am
THIS SORT OF WASTEFUL SPENDING IS EXACTLY HOW THEY GOT INTO THIS MESS IN THE FIRST PLACE. AS MY 1ST GRADE DAUGHTER WOULD SAY: DUUUUUHHHHHHH!
October 2nd, 2008 at 10:33 am
formerAIGemployee Says:
“you people need to put your thinking caps on and stop being driven by appearances and your emotions.”
It is you who needs to think here. Proper business practice defines that even the perception of impropriety must be defended against.
The appearance of impropriety generally points to it.
October 2nd, 2008 at 10:36 am
WOW HOW FREAKING DISGUSTING NEEDLESS TO SAY THIS COUNTRY IS REALLY STARTING TO SUCK AS IF THE GOVT DID NOT SUCK ALREADY.
October 2nd, 2008 at 10:58 am
Oh come on. AIG Americn General will be on the auction block tomorrow as of 6:30 PM PST. It will bring AIG between $25 and 30 bn which will be used to may down its loan. Mark my word. These people are the people who are making the company worth what it is. If we shut the company down do you disgruntled taxpayers think you’re ever going to get a return on your investment?
October 2nd, 2008 at 11:09 am
How do we hold them accountable? This is frivolous spending, poor judgement, morally wrong, bad business ethics, whatever…. it’s disgusting!
October 2nd, 2008 at 11:18 am
on top of it, they will write the expenses off and your tax dollars are screwed over twice.
October 2nd, 2008 at 11:31 am
where ocean-view rooms start at $565 a night
Was this the Conference Contract Rate?
And how much deposit would of been lost including lost discounted airfares vs what was spent?
As always, we need real numbers and not headline.
# formerAIGemployee Says:
October 2nd, 2008 at 8:41 am
Its not what it looks like, you people need to put your thinking caps on and stop being driven by appearances and your emotions.
October 2nd, 2008 at 11:37 am
To the folks who want names and numbers!
I’d love them, too.
Problem is, AIG is a private company, and doesn’t have to provide those kinds of details.
Perhaps policyholders can lean on the management to get that sort of information… or maybe the folks at the registration desk at the St. Regis?
The Watchdog loves to get little presents in the mail from completely anonymous sources. We do, of course, verify that all documents are real before writing anything based on them.
October 2nd, 2008 at 11:43 am
If this is not a bail-out just an investment, than who is going to reep the intrest of this 700 Bil? Greed! and who ever has a stake in it, guess who CONGRESS! agian will benefit instead of the hard working class.
October 2nd, 2008 at 11:57 am
And I have been teaching my kids to make an honest living.
I guess anything goes now, people will not remember in a couple of months.
There is a sucker born every second now, called taxpayers.
October 2nd, 2008 at 12:12 pm
Teri Sforza, Register staff writer Says:
October 2nd, 2008 at 11:37 am
To the folks who want names and numbers!
I’d love them, too.
Problem is, AIG is a private company, and doesn’t have to provide those kinds of details.
* * * * * * * * * *
“[A] private company” Really?
October 2nd, 2008 at 12:22 pm
AAA “Northern” California office is closing their Irvine office and laying off 600 ~ more than half of us are already gone. Some elected to move to Glendale, AZ and were paid between $10 and $20K to relocate. Only to be laid off from Glendale two months later. And they are still “relocating” Irvine people from Irvine to Glendale. What’s wrong with this picture?
This is not to confuse AAA Northerna California with Automobile Club of Southern California (ACSC) which is not affiliated ~ technically.
October 2nd, 2008 at 12:31 pm
sweet… yet another reason to push the bailout through… some people need to maintain thier lifestyles
October 2nd, 2008 at 12:45 pm
I think the Holiday Inn was all booked that weekend.
October 2nd, 2008 at 1:16 pm
Socialism is GREAT when you’re in on it! This what my friends from the former Yugoslavia always told me, they worked for the government and got all kinds of freebies!
October 2nd, 2008 at 1:55 pm
Teri Sforza
don’t you have sources inside the hotel?
isn’t that how you found out about this is the first place?
get the names from them.
who was booked in the rooms in question?
let’s dig a little deeper.
i promise I will subscribe if you can deliver to names to us!
October 2nd, 2008 at 11:17 pm
Where are the Iraqi ‘insurgents,’ when you need them?
Cheers,
Lori R. Price
Citizens For Legitimate Government
http://www.legitgov.org/
“Hi, mom, this is Mark Bingham… you believe me, don’t you?” Mark Bingham - Sept. 11, 2001
http://www.legitgov.org/9_1_1_oddities.html
October 2nd, 2008 at 11:46 pm
I have to agree with Jenifer Weigand. I worked at a non-profit that hosted two annual conferences between large corporate wholesalers and the retailers that supply them with the products.
Conference locations were entered into contract 4-8 years in advance. Your in a contract, you just can’t bail our or your responsible for the costs anyways.
I did jump in thinking “those bastards” but that first comment reminded me of that.
October 3rd, 2008 at 4:02 am
This is really a surprise to anyone? After the useless full Congress approves a $700,000,000,000 plus BAILOUT for Wall Street, why should it matter? Think the collapse of the USSR was a surprise? Wait until you see what happens to the formerly ‘Good ol’ U.S.’
October 3rd, 2008 at 6:24 am
AIG is actually controlled by its parent company in Hong Kong which is controlled by its founding company the Cathy Group in Taiwan. This group was founded by the late Mr. Wan-chung Tse whose son is now the vice chairman on the AIG board, Mr. S.W. Tse. AIG was founded in 1967 by the seed money from its Hong Kong / Taiwan parent holding companies. It’s an American subsidary of an International business Group, AIG. When Paulson and Bush offered $85 billions of taxpayer’s money to bail out AIG was under the demands from its parent holding groups. If we had not bail out their US subsidary, then the parent groups would have let its US sub to deault all of its obligations and fold. As we all know AIG has socked up trillions of dollar worth of pension funds, annuities, mutrual funds (410K), etc. from the American public to gamble away. Its parent holding groups will lose NOTHING if the US sub failed. Paulson and Bush were balck-mailed and buckled. Now the $700 billiions bail out bill will pay the European and Asian financial groups subsidaries in the U.S. Such as ECB, HBOS, Barclay, HSBC, Deutch, Fortis, LLoyd TSB, etc. My point is when these foreign big investors demand their return of their money, the US is being de-leveraged to pay their losses. Should we stiff arm them with a threat of WW III nuclear war, or just sucked it up and pay ?
October 3rd, 2008 at 7:27 am
This could be American General’s last party hearty. Parent company AIG might decide to suck it dry. First they came for the taxpayers…
October 3rd, 2008 at 9:48 am
It is pathetic to see uneducated people comment on something they read from a “journalist” who has no clue. Maybe the OCR pays their reporters on how many comments they can get… sad.
October 3rd, 2008 at 10:09 am
@ Ms. Weigand:
Extraordinary times call for extraordinary actions. Sometimes these actions cause disappointment. After $85 Billion of taxpayer dollars went into AIG’s till to shore them up, I submit a little disappointment for these “hard chargers” would not even be extraordinary. Quite frankly, the phrase “pigs at the trough” may never be so appropriate as in this situation. Frankly, the federal government should take AIG to severe task over this. Screw those “hard chargers” and the people who made the decision to go ahead with this function. They need to face the music on this one.
@formerAIGemployee:
No tortured logic you could offer could possibly excuse this function, given recent circumstances. This is as fine an example of why the financial services industry needs sweeping and near-draconian reforms as I could fantasize, much less factually report. The simple fact is that now they are suckling at the government sugartit, the party is over and expenditures should be for core expenses, related to keeping the company afloat only. Not an open bar and fine crystal.
I don’t know which is more appalling: this function or your attempt to deride any criticism of it. It’s a neck-and-neck race.
October 3rd, 2008 at 1:51 pm
And, as noted, this was from a profitable subsidiary.
Yea, well maybe the profitable subsidiary needs to bail out the parent company instead of the GOVA-MINT (spelled on purpose).
That’s just stupid, as far as I’m concerned it’s either all AIG or it’s not. This wouldn’t be any of my business had my GOVA-MINT not helped AIG.
I couldn’t care less if AIG goes bankrupt. Had AIG filed for bankruptcy, you think this party would have happened. If so, I wander what the bankruptcy judge would have thought about it.
October 3rd, 2008 at 3:10 pm
The $700B bill has passed. It’s the beginning of the economic demise of the USofA. Time to move on and explore new upcoming territories. I’ve started learning mandarin. It was nice knowing you all!
October 3rd, 2008 at 4:05 pm
Mike D Says: caseclosed Says: —- yada yada yada — How can any intelligent person look at this and make such ignorant comments? Then - It’s the blog and we have idiots who comment!
October 3rd, 2008 at 8:03 pm
Dear Watchdog,
I understand how upset everyone is over the bailout, however this reporting is irresponsible and simply sensationalizing a bad financial climate.
I worked as a corporate planner and event producer for 18 years. These events are planned far in advance and, if an event is canceled, the corporation still has to pay for the event! Sometimes the cancellation fees and contractual agreements have penalties exceeding the original cost of the event.
The hospitality industry is taking a huge hit in this ridiculous market. Millions of working class Americans who are the lifeblood of the hospitality industry are losing their jobs.
So where do you draw the line, especially, considering this incentive event was created for a profitable division of the company?
Please be less sensational and more responsible in your reporting.
October 3rd, 2008 at 8:19 pm
I think this was the right place and setting to pass out $85 billion in bonuses and raises. At least OC got some influx of that cash.
October 4th, 2008 at 3:36 am
For those of you who defend AIG by mixing up the fact and the plan.
The bottom line is that AIG wouldn’t and couldn’t have this event, if the tax payers didn’t saved them a couple weeks ago.
These comments sicken and anger me even more about the bailout. They remind me that the wall street fat cats will continue to go on about their business as usual like this has never happened.
When the tax or public money is used, these companies need to be more sensitive to the general public and their opinion as they are to any other investors. Current bail out provision includes only a little public or government involvement of how the company operates. Therefore these companies owes us to be sensitive and ethical.
Stop defending you actions & do the right thing!
October 4th, 2008 at 4:06 am
Disgusting and what else would you expect. They needed to fall adncrumble and our govt betrays us allowing this. Take every deceptive person in their industry, the execs abd highly/overpaid people along with anyone who allowed fraudulent type loans (of course they are protected!!) and take their assetts and monies and put them in a shelter and give the money back to us. NOW
October 4th, 2008 at 11:23 am
This is all Bill Clinton’s fault. And THOSE PEOPLE!
October 4th, 2008 at 1:04 pm
Now that they are receiving public funds they need to be honest and open with the public . Open up the books so we know you are not cooking the books. Expose all transactions for AIG use of public funds that bailed them out. They owe the public now to be open. They need to allow the public in these parties and showcase outings and hotel business meetings and conventions. Its our money and we want it now.
October 4th, 2008 at 2:01 pm
This is NOT Clinton’s fault. Are you mad????
This is Republican’s refusal to regulate. It has been a mantra they have , “Deregulate, Deregulate!” …for YEARS!
I am so angry I am ready to start a tax revolt. This is outrageous! As was stated earlier, it is completely inappropriate! (to put it much too mildly).
I think they should pay the money back if they have to take it out of the top executives pockets.
October 4th, 2008 at 4:22 pm
OK. I understand this conference was paid for well in advance of the AIG bailout, but as they say, “appearances are everything.” Allowing this boondoggle to proceed was a serious PR mistake. They should have canceled the conference and eaten the costs. Then again, the top executives at AIG probably don’t give a flip what we think, because it’s the serfs’ job to finance the lifestyle of the ruling class. That’s how feudalism works!
EXCEPT . . . These guys are not the Overclass you (and they) may think they are. They are executives on salary, which means they are the well-paid minions of the Overclass. They are “la bourgeoisie,” (upper middle class). La bourgeousie was promised a place in the Inner Circle if they just would go along with he Master Plan. Their parts in this drama were compartmentalized, and most didn’t even see the Big Picture until it was too late. The bottom line is that they’re just guys with jobs. Jobs that pay really, REALLY WELL, and they probably worked their ASSES off for that promised vacation.
During any class-based revolution the Overclass sacrifices the bourgiousie to the angry and betrayed masses (yay, that’s us!). Revolution against the so-called “elites” (who aren’t the real elites, who remain anonymous) gives the masses a place to focus their rage and removes the bourgeois “competition” to Overclass authority. The bourgiousie then discovers the hard way that all those promises the Overclass made to them were as insubstantial as air (Google: “French Revolution” + bourgiousie + guillotine).
Perhaps allowing this conference to proceed wasn’t such a “mistake” after all. Expect many of these kinds of articles to be appearing in the news real soon, ones that make out the banking and political class to be the main/lead actors in this criminal drama. The angrier we are at the banking class and the politicians who sold us out (with guns to their heads), the less we’ll focus on the REAL criminals, the central bankers at the FEDERAL RESERVE BANK and/or the IMF who planned this fiasco from the gitgo. All to “make the economy scream.” (Google Kissinger + Chile + “Central banks” + Allende + “make the economy scream”).
In fact, if you’re looking to tar and feather someone, try finding out the names and coordinates of the owners and major shareholders of the Federal Reserve Bank. Good luck with that.
October 4th, 2008 at 4:54 pm
My son turned 18 yrs old and was to get his AIG mutal funds shares out last week. He has lost everything. Has anyone show this to MSN or CNN or Foxnews?
This is so hurtful.
October 5th, 2008 at 10:05 am
http://www.youtube.com/watch?v=gqpFm7zAK90
AmeriKKKA = MOUSLAND
Enjoy.
October 5th, 2008 at 12:05 pm
My Fellow Americans
It is time for us to STOP bickering among ourselves and Stand United and be part of the solution
October 5th, 2008 at 12:07 pm
Learn the Facts and some of the solutions to begin fixing things
Google Perot Charts
Thanks
October 5th, 2008 at 6:04 pm
Here is a guy who gets what this is all about.
Check out the commentary on The Legal Broadcast Network about AIG and it’s executives. Its nice to see someone inside the industry call these guys out.
http://thelegalbroadcastnetwork.squarespace.com/chairman-mark/2008/10/5/aig-proves-how-detached-its-leadership-is-party-goes-on-as-p.html
I get the meeting planner argument but this guys idea makes incredible sense.
October 5th, 2008 at 6:51 pm
Wow, Defending AIG? You must be from Corporate trying to run interference? Next time you want to partie on my nickel, use Ramada Inn, it’s cheap. How about sponsering a PTSD conference for all those contractors coming home? How about you stop threatening to cut the injured disability if they don’t settle. Why did you hire Tangiers to open shop in Baghdad, to deny more injures? What happen to their first choice doctor? Did anyone here realzie that AIG has made 100 million if per profits from our tax dollars that were supposed to go to the injured? It’s a cost plus contract! Did you know that AIG makes 15% mark up on each person that is injured in Iraq then they don’t pay out! LOL OMG, This is called “Misappropriation of Funds” and an investigation should be done! Think of all the children in American Who don’t have insurance, and what that money could of been used for? Try donating it next time, your employees don’t need recognition!
October 5th, 2008 at 7:25 pm
Perhaps we should have a “Boston Tea Party” at their next event!
We should throw some of them in to the harbor/ocean/pool - what ever body of water is close.
Tax payers revolt !!!
October 6th, 2008 at 7:40 am
Planned in advance? Oh, like the accounting fraud within AIG, for which several executives were recently sentenced to prison.
The whole thing in one word: Arrogance.
October 7th, 2008 at 11:11 am
I think you are putting way too much into the media headlines…
AIG is a bunch of companies, not just one. It’s very unfortunate that the “taxpayers” scan the newspaper headlines and pop off at the mouth with whatever comes to mind first.
I wish the news would be specific, when addressing AIG–There is AIG PARENT and then, there’s AIG EVERYTHING ELSE. Instead of reading a headline, read the WHOLE STORY.
AIG Parent company was bailed out, due to the mortgage isses that are plaguing society by the minute… The “subsidiaries” are not in trouble…and the “subsidiaries” didn’t receive the cash nor did they need the bailout… Segregation is key, when speaking of AIG… There are several subsidiaries of this company. AIG Insurance is very profitable, and weren’t “bailed out”…That’s why they are still #1.
QUOTE: “The St. Regis conference included recognition for vital independent agents who distribute AIG American General’s products - insurance for individuals and businesses. AIG American General - a subsidiary of parent AIG - is in much, much better financial shape than AIG itself. ”It’s one of our viable businesses,” said AIG spokesman Joseph Norton. “They’re fully capitalized. They’re fine. It wasn’t a corporate kind of thing.””…..
***AIG Insurance Companies were not a part of the bailout, nor can their monies and profits be used to pay the FED back…There are laws against it….it protects the insurance businesses and their customers.
It’s an insurance party….They have money, so why shouldn’t they throw a party for their customers and business associates? Insurance isn’t the problem, and is still operating and succeeding at the same pace as before the bailout. Leave AIG Insurance out of your “bailout for AIG Parent” taxpayer outrages, because it’s not involved.
October 7th, 2008 at 12:33 pm
To Teri Sforza, Register staff writer:
Ummm…AIG is a public company, hence them being traded on the stockmarket and it’s “AIG” symbol on it. Stop posting your incomplete stories and do some research!!!
Source: http://en.wikipedia.org/wiki/AIG
American International Group, Inc.
Type: Public (NYSE: AIG)
Industry: Insurance, financial services
Products: Insurance annuities, mutual funds
Market cap: US$7.23 billion (As of September 18, 2008, close)
Revenue: US$110.064 billion (2007)
Operating income: US$8.943 billion (2007)
Net income: US$5.36 billion (2nd Quarter 2008)
Total assets: US$1.050 trillion ( 2nd Quarter 2008)
Total equity: US$78.09 billion (2nd Quarter 2008)
Employees: 116,000 (2008)
Website: http://www.AIG.com
WOW! Now you people should REALLY bow out gracefully.
HA HA HA HA HA!!!! HILARIOUS!
TERI = STUPIDITY.
Thank you and have a nice day…
October 7th, 2008 at 1:55 pm
This was found worthy of my web comic.
http://facebigelow.blogspot.com
October 7th, 2008 at 4:15 pm
AIG is throwing an even BIGGER sales party next Monday in Atlanta!! Sorry, it’s a sales “education” conference. Silly me.
That $400K will be a drop in the bucket compared to their Atlanta expenses and even if it were booked in advance, they would have cancelled it if not for OUR MONEY!
AIG is disgusting. The Fed should call in the loan or the attending execs should be fired.
October 7th, 2008 at 6:59 pm
Perhaps we all can begin to understand that the insurance companies that sell the life insurance is not the ones that are in trouble. I can honestly say that I personally receive several calls a day on that very subject. I have yet to see a claim be denied. If anyone has a concern about their life insurance run through AIG, perhaps they should contact the financial division in their own state. Florida does say that AIG life insurance companies can and will pay the claims. Do I think the timing of the party was wrong, absolutely. People get angry with the ones that wrote the bad loans for the subprime mortgages in the first place. Then blame the AIG company for buying the bad loans once they were made. STUDY THE FACTS PEOPLE!!!!!!!
October 8th, 2008 at 12:58 am
And it makes it ok that so many people are suffering and needing the next miracle. So many people uninsured and insurance companies partying on the profits they made from people who are struggling? How can any comment justify an insurance company partying in an insurance poor country? Lower premuims for more unisured can afford insurance instead of partying. Come on people let keep it real. We all know it was wrong to even plan the event in the first place, this is not a new problem.
October 8th, 2008 at 8:30 am
As a meeting planner for over 30 years I think that AIG should have cancelled their meeting no matter how long it had been booked.
Cancellation fees would be costly, but not nearly as bad as the excessive spending for food & beverage, spa treatments, golf, room service, etc. It is a disgrace.
October 8th, 2008 at 10:53 am
Question: Would these expensive events be held if there had been no “rescue” loan of $82 billion plus? If the answer is yes, then party on, dudes. If the answer is no, KNOCK IT OFF! Due to previous bad decisions, AIG shouldn’t behave as if it is business as usual. The execs who made poor decisions that led to the AIG near crash need to re-evaluate priorities so that appearances, actions, and decisions reflect their understanding that they are living on borrowed money. Unfortunately there was no burn (consequences) connected to their fall because Uncle Sam came along to lend a helping hand, with taxpayer money, so it is difficult to learn. The entire situation with the $700 billion bailout reminds me of a group of alcoholics and their enablers, except the money being used belongs to neither of them - what’s in their accounts and what is coming from the feds.
October 8th, 2008 at 11:00 am
To say that “incentive programs for independent top producers in numerous industries are actually planned and budgeted for more than a year in advance” is crazy. Plans can be changed. There is no excuse for this kind of spending. I worked as a loyal employee for 10 years before quitting earlier this year…April. I knew this was coming. Moral at the company is at an all time low and is not getting better.
The policy holder should be concerned. Good workers in every division are leaving. I personally know 15 more employees leaving next month. This will leave inexperienced agents working your claims and servicing your policy.
I’m an optimist but I’m no fool. The light at the end of the tunnel is getting smaller every day…maybe a pinhole at best today.
October 8th, 2008 at 6:24 pm
Forget the taxpayers. Every one of you who pays an insurance premium is paying for this gluttonous excess. You’re also paying for bloated executive salaries and golden parachutes, outrageous expenses and “consulting agreements” for failed executives and you can bet that whoever pays the piper at the end of the day it won’t be the thieves at the top of the pile with their over developed sense of entitlement. It will be every homeowner, driver, life insurance customer or patient in need of health care who’s stupid enough to take out a policy with these robbers.
October 9th, 2008 at 5:32 am
The government should take back the loan to AIG!!!!!! I was opposed to the plan from the start and this only reinforces my thoughts. Also, all the people involved in the mortgage debacle and the credit default swaps should be prosecuted….. What the hell is wrong with Americans?? We better wake up and demand correction and restitution!!!!
October 9th, 2008 at 9:07 am
I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to America in a ” We
Deserve It Dividend “.
To make the math simple, let’s assume there are 200,000,000
bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man,
woman and child. So 200,000,000 might be a fair stab at adults 18
and up.
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a ” We Deserve
It Dividend ”
Of course, it would NOT be tax free. So let’s assume a tax rate
of 30%. Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam. But it
means that every adult 18+ has $297,500.00 in their pocket. A
husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it’ll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent’s medical insurance - health care improves
Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18 + including the
folks who lost their jobs at Lehman Brothers and every other
company that is cutting back. And of course, for those serving in
our Armed Forces.
If we’re going to re-distribute wealth let’s really do
it…instead of trickling out a puny $1000.00 (”vote buy” )
economic incentive that is being proposed by one of our candidates
for President.
If we’re going to do an $85 billion bailout, let’s bail out every
adult US Citizen 18+!
As for AIG - liquidate it. Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.” But can you imagine
the Coast-To-Coast Block Party !
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85
Billion ” We Deserve It Dividend ” more than I do the geniuses at AIG
or in Washington DC , especially since AIG is already spending it on crazy things like new cars for the “big shots” at the company .
And remember,this plan only really costs $59.5 Billion
because $25.5 Billion is returned instantly in taxes to Uncle Sam.
PS: Feel free to pass this along to your pals in congress, as it’s either good
for a laugh or a tear or a very sobering thought on how they should really be
using OUR…. $85 Billion!
October 10th, 2008 at 6:04 am
You guys sound like a bunch of Obama supporters (and actually, Mrs. Opinion posted that same crap on the Obama website.)!!! He’s an idiot…You guys are sore about bailing out AIG, and at the same time you support that crazy plan to give everyone in the U.S. health insurance…Don’t you have to pay for that? Don’t we already pay for Welfare–that’s food, housing, etc., and the Econ. Stimulus Check–we paid for that, too…even gave to those who didn’t pay taxes!!! This is a riot! The plan should be GET A FREAKIN’ JOB…Stop living off of welfare, and passing it on like a tradition… It’s supposed to be temporary, not a way of life.
And, as for AIG…EVERY (insurance) company is out to make money… They make money off of you NOT having accidents/claims. Basically, you pay your premium, they receive it, they reserve a budgeted amout for claims, and they invest the rest in SAFE investments, and watch it grow…This is where the money for parties comes from…
Reverse the tables…Should you have a claim, they will have the money to pay it. AIG Insurance has the money, on hand, to pay any and all claims—They do it EVERY DAY…$73 million A DAY, people… And, that is WITHOUT the bailout money… The bailout money was only for the financial part of the company…
And the “Executive Retreat”…That was a “retreat” was an Agent Meeting for American General Life Insurance–an AIG Subsidiary… It was not for the AIG Parent Company (Executives), the recipient of the “bailout” $$$. This is one of the most profitable subsidiary companies of the AIG “group”. The “party” was to say thank you, to the major producers, for supporting AIG… (Over 100 people attended–agents from other life insurance companies–only 10 of them were AIG Subsidiary employees, representing the company). The producers that work with AIG to get your premiums lower, for life insurance. It’s called a business relationship. If you build relationships, you can work better together.
October 10th, 2008 at 10:29 am
I believe Mrs Opinion has added too many zeros. $85 billion divided by $200 million is $425, not $425,000. If your calculator doesn’t go that many digits out, look at it this way: $85 x 10e9 ($85 times 10 to the 9th) divided by 2 x 10e8 (2 times 10 to the 8th) = $42.5 x 10e1, or $425. Usng the same 30% tax bracket, we’d get back $297.50. I’ll take it.
October 11th, 2008 at 6:56 am
Get their names and we can hunt them down like the dogs that they are!
October 18th, 2008 at 11:20 pm
vile.
November 11th, 2008 at 10:56 am
This is why the economy is in the shape that it is !!!
GREED GREED GREED
The greed of companies and the wealthy are going to be the death of this nation.
You can party if you want…………but keep your hands off the taxpayers money !!!