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AIG’s St. Regis blowout bill: $443,344
October 7th, 2008, 12:35 pm · 67 Comments · posted by Teri Sforza, Register staff writer
(UPDATE! Obama cites St. Regis blowout in debate, says, “Fire the
scoundrels!”)
Last week The Watchdog broke the story that, less than a week after the $85 billion federal bailout of American International Group Inc., its subsidiary, AIG American General, partied in style at the exclusive St. Regis Monarch Beach Resort.
But now we’ve got the bill, thanks to Rep. Henry Waxman, chairman of the House Committee on Oversight and Government Reform, which is grilling former AIG execs today on events that led to the federal intervention.
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
- and $1,488 at the resort’s Vogue Salon
The Bloomberg wire service quoted Waxman as saying, “Average Americans are suffering economically 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.”
Remember, you heard it here first.
There’s more billing detail from the St. Regis here. And colleague Dena Bunis’s report from the hearing here. The entire Bloomberg story follows:
AIG Spent $440,000 on Spa, Resort After Bailout, Lawmakers Say
Oct. 7 (Bloomberg) - American International Group Inc. spent $440,000 on a conference at a California resort less than a week after an $85 billion government takeover, lawmakers said.
The bill from the St. Regis resort in Monarch Beach included $23,380 for spa services, according to Representative Henry Waxman, chairman of the House Committee on Oversight and Government Reform. Waxman led questioning today of former AIG Chief Executive Officers Martin Sullivan and Robert Willumstad as Congress probes events that led to federal intervention.
“Average Americans are suffering economically,” 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 $600 a night, with a two-night minimum.
The St. Regis expense “seems very inappropriate,” 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 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.
`Standard’
“This is very standard in the industry to reward the top 5 to 10 percent 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 Waxman’s committee showed that AIG spent $139,375.30 on rooms, $147,301.71 for “banquets,” and $1,488 at the resort’s Vogue Salon, which offers manicures, pedicures and hairstyling. The group spent $6,939.09 on golf, $2,949 for gratuities, $5,016.32 at the StoneHill Tavern and $3,064.71 for in-room dining and the lobby lounge.
Presidential Suite
The group booked the resort’s 3,100-square-foot Presidential Suite for $1,600 a night for five nights, a discount from the standard rate of $3,200 a night, a hotel document released by the committee showed. It also paid $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 Waxman were dated Sept. 22 through Sept. 30. AIG was bailed out on Sept. 16.
The congressional committee is looking into who should be held accountable for the “financial excesses that led to the market breakdowns,” according to the committee’s Web site. Lawmakers yesterday lashed out at Lehman Brothers Holdings Inc. CEO Richard Fuld yesterday, peppering him for two hours with queries about excessive Wall Street pay and his failure to acknowledge the firm’s financial woes until it was too late.
-0- Oct/07/2008 18:19 GMT 10-07-08 1419EDT
More Watchdog:
- AIG subsidiary parties in style in OC, two weeks after bailout
- Obama on AIG’s $400,000 party: ‘Fire the scoundrels!’
- Prez didn’t push for bailout so execs could get facials
- Behind the AIG party: A look at the St. Regis
- The half-billion-dollar Boy Scout stash
- The million-dollar Boy Scout. Thrifty, indeed!
- God’s quid pro quo?
- Earthly kingdom: Trinity’s $167 million in real estate
- OC’s dead pets enter the food chain. Mmmm.
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You have got to be kidding me. This is so out of control.
Ok, so they could have had 170,000 parties on the $85 billion they got. That doesn’ t change the fact that the taxpayers just coughed up a huge amount of money for them.
It would have been a minimum of graciousness on the part of AIG and its employees to thank the taxpayers by cancelling their blowout at a resort most of us will never be able to afford, and instead opt for a picnic on the beach.
Remember to Vote against Congressman John Campbell 48th district for voting in yes on the Bank Bailout bill.
And people are surprised? People will yell and scream about it, but the fact the matter is.
All these people are laughing in all our faces - cause nobody can do jack about it. Get ready with the astroglide cause this is only the beginning.
disgusting
(this comment is to short)
Dispicable ~ and AAA Northern California’s “Irvine” office is kicking 600 employees to the curb with no grand farewell and no bailout.
REMEMBER to vote AGAINST GARY MILLER for voting for this ‘bailout’!!!
Kingo:
We are organizing a campaign to run against Miller. I am a Republican and the people will have a choice in the June 2010 Primary.
We are looking for support and would welcome your ideas. This is a serious candidacy. Our website will be online within the week.
Lee McGroarty
confused……………..aaa nocals irvine office? do you mean northern OC irvine office?
The economy as we know it is history, it is Mad Max time for the world!
I guess we the responsible TAX PAYERS are picking up the tab for AIG’s party! This is too much for me!!!
Can I incorporate and get bailed out?
You can thank … Senator Christopher Dodd (D), Barney Frank (D), Chuck Schumer (D), Harry Reid (D), Nancy Pelosi(D) … all voted against regulating Fannie and Freddie in 1998, 2004, 2006.
In 2004 both Senate Banking Committee Chairman Christopher Dodd (D) and House Finance Chief Barney Frank (D) Senate issued a joint statement … “we are against regulating Fannie and Freddie, so that low income citizens and ‘working non-citizens’ can also own houses and enjoy the American dream, instead of just the wealthy.”
Gary: I assume homeatlast is referring to CSAA - California State Automobile Association. They are the NorCal version of the Auto Club, and both are AAA affiliates.
I think I remember hearing about them closing down their office down here. At the time, I was surprised to hear they had one. I didn’t realize they employed 600 there. That’s bad!
Eprime: You guys are sounding like a broken record. Republicans controlled Congress in 2004, and the committee chairmen were Republicans, not Democrats. And, although Democrats blocked stronger regulation of FANNIE AND Freddie (hardly ALL regulation, as they have always been under Federal regulation), those two agencies are a small part of the problems today. They certainly have nothing to do with AIG’s CDS business (or anyone else’s for that matter).
Wall Street firms securitized far more mortgage debt than either GSE, and they really pushed the subprime junk. The GSEs problem was that they retained mortgages as investments rather than securitizing all of them. That’s the problem when you make them publicly-held and answerable to shareholders rather than operating for the public good.
Meanwhile, Bush was arguing that the FHA should make zero-down mortgages. Face the facts — both parties wanted the housing bubble to expand, and both were trumpeting home ownership statistics. Greenspan was telling people to get ARMs and keeping rates well below inflation.
Democrats and Republicans - all the same. Seriously, it’s business as usual in D.C. Does it surprise people that the real estate bubble started with the deregulation policies of Clinton/Greenspan back in the lat 90’s? Hello, anybody who believes that there is a huge difference between the two major political parties are naive.
Congressmen and candidates from both sides of the aisle receive huge donations from big business. So guess what? Their policies will ALWAYS be pro business. Obama represents “change” only in the color of his skin, but any real change is an illusion. Look, BOTH McCain and Obama were for the $800B Bailout!
Bush has spent more than any Republican before him and would put JFK to shame with the amount of waste he’s allowed to go on. Every self-respecting fiscal conservative recognizes Bush for the pawn he is.
Where do we go from here? At the rate things are going, there will be a revolution of sorts in 20 years by the middle class.
What would happen if every American boycotted paying taxes to show we are not going to put up with this! I think it’s time for a revolution.
If we don’t pa taxes the IRS takes everything you have.
We do need to sue the Federal government.
People who pay their bills on time are bailing out CEOs who make bad decisions, those who commit fraud and do not pay their bills, and corporate stupidity.
Our Government has gone mad.
If you want play to blame the party game the Republicans had control of congress for 12 years and the white house for 8. In that amount of time they should have had a clue as it was under their watch. The Democrats o the other hand subsidize and enable every criminal and welfare recipient further draining our pockets.
In any case any representative of any party who voted for this atrocity should be voted out come election day.
If they have the word incumbent next to their name they are out.
I think is time for another Tea Party…
Please DO NOT forget to VOTE AGAINST GARY MILLER who voted ‘yes’ on bailout plan.
This is criminal!!!
They need to go to everyone that attended the conference and bill them individually for their expenses. Or the government needs to go after them for this money…
This sucks.
i just cant believe this bullsh**
after finding out this issue, what happens now?
“The group occupied more than 60 rooms. Receipts provided by Waxman were dated Sept. 22 through Sept. 30.”
Average about $290.00 a night.
Much less then … “package costs $600 a night” as headlined in this article or “rooms start at $565 a night ” as mentioned in the first article.
I am not saying this bill is high or low - just another one selling headlines with inflated numbers.
How many people attended the event and what was the cost per person and expected return on the investment?
Please give us all the facts.
Vote NO on John Campbell…
Vote NO on Gary Miller…
Because they voted YES to spend OUR money on the morons who created CDS, Deriv’s, and swaps…
No legislator supporting them will have our support either.
This includes McCain and Obama.
I’m looking for a viable third party to be involved with at this point.
Both parties have abandoned their responsibility to our citizens first.
If this was a legitimate award trip for top performing Insurance agents, then it is acceptable
Would you like to have worked very hard for the past year to be awarded a trip, then have the award trip pulled from you due to lousy decisions in a division that you have nothing to do with (the Financial divisions)
The timing was worse than anything, but think of the rank and file insurance agent who did nothing wrong and was just looking forward to an award trip
When I first heard of this, it was called a “retreat”, but now it appears it was an award trip only
I work in the hotel industry and its not that easy to just walk away from an agreement when the hotel has been counting on this AIG Group’s arrival for some time. I am sure this trip was not planned any less than 18 months from the arrival date and The St. Regis Monarch Beach generally requires large deposits several months from the arrival date. The hotel has to protect itself from last minute cancellations and potential roms that it would not have enough time to re-sell. To cancel this function, even several months before the arrival date, could have caused AIG to lose a hefty deposit, not to mention pre-purchased airfare and other miscelaneous costs associated with such trip. If they cancelled the event, people would complain that AIG wasted cancellation fees instead of putting the money to use rewarding top sales people.
Is this representative of the reasons why the House and the Senate spent days convincing U.S. citizens that assistance to AIG was necessary? If AIG is not required to pay this money back, then every politician who voted for the bailout needs to be run out of office. This is a true disgrace.
No wonder my insurance costs so much.
Just remember that the AIG visit kept some of your neighbors employed and the hotel’s doors open. Just the “Trickle Down Theory” at work.
Great piece of reporting! Keep it up!
We ain’t seen nothing yet. Wait til the $700,000,000,000 party gets rolling. Thank goodness we did this in a hurry. Otherwise the people that voted for it might have known what they were doing.
Forget a TEA PARTY we need a French Revolution!
The executives should reimburse AIG and we the taxpayers the following:
$23,380 for spa services, expense report denied for this item!
$6,939 for golf, expense report denied for this item!
$5,016 for the Stonehill Tavern, expense repert denied for this item!
$3,065 in room dining? expense report denied forthis item!
$1,901 Monarch Bayclub? expense report denied forthis item!
$1,488 for the Vogue Salon? expense report denied forthis item!
Sounds like a great patry!
All of the listed companies below, are “AIG”, according to the media. Which one did the spending? Which one received the “bailout” money? FYI—It wasn’t American International Group that “partied it up in the O.C.”…It was American General…an insurance company…NOT a recipient of the “bailout” cash.
COMPANIES:
American International Group, Inc
AGFC Capital Trust I
AIG General Insurance (Taiwan) Co., Ltd.
AIG Life Holdings (US), Inc.
AIG Retirement Services, Inc.
American General Capital II
American General Finance Corporation
American General Institutional Capital A & B
Capital Markets subsidiaries:
AIG Financial Products Corp.
AIG Matched Funding Corp.
AIG-FP Capital Funding Corp.
AIG-FP Matched Funding Corp.
AIG-FP Matched Funding (Ireland) P.L.C.
Banque AIG
Mortgage Guaranty subsidiaries (second-lien and student loans):
United Guaranty Commercial Insurance Company of North Carolina
United Guaranty Residential Insurance Company of North Carolina
American General Finance, Inc.
American International Group, Inc.
AIG Edison Life Insurance Company
AIG Financial Products Corp.
AIG Funding, Inc.
AIG Liquidity Corp.
AIG Matched Funding Corp.
AIG SunAmerica funding agreement-backed note programs:
AIG SunAmerica Global Financing Trusts
ASIF I & II, ASIF III (Jersey) Limited
ASIF Global Financing Trusts
AIG SunAmerica subsidiaries:
AIG SunAmerica Life Assurance Company
First SunAmerica Life Insurance Company
SunAmerica Life Insurance Company:
AIG UK Limited
American International Assurance Company (Bermuda) Limited
American Life Insurance Company
Commercial Insurance Group subsidiaries:
AIG Casualty Company
AIU Insurance Company
American Home Assurance Company
American International Specialty Lines Insurance Company
Commerce and Industry Insurance Company
National Union Fire Insurance Company of Pittsburgh, Pennsylvania
New Hampshire Insurance Company
The Insurance Company of the State of Pennsylvania
Domestic Life Insurance & Retirement Services subsidiaries:
AIG Annuity Insurance Company
AIG Life Insurance Company
American General Life and Accident Insurance Company
American General Life Insurance Company
American International Life Assurance Company of New York
The United States Life Insurance Company in the City of New York
The Variable Annuity Life Insurance Company
Mortgage Guaranty subsidiaries (first-lien loans):
United Guaranty Mortgage Indemnity Company
United Guaranty Residential Insurance Company
ILFC E-Capital Trusts I & II
International Lease Finance Corporation
Transatlantic Holdings, Inc.
Transatlantic Reinsurance Company
American General Finance Corporation
CommoLoco, Inc.
AIG Capital Corporation
I believe we need to take action—Obama made the suggestion that I would support~AIG should be forced to return the $85 billion and the top administration should be fired. After I am awake worrying about my $ and my investment with AIG, they are going to the spa and golfing!!! This is ridiculous and something should be done about it!
We need to start executing these criminals!!!!
I know lots of people who work hard and none of us get an award like this. Better to pay $100,000 in fees than $443,000. The only “award” the rest of us will see is paying for this mess. The word for the year is: Greed.
Is anyone really surprised at this, along with the Lehman scandal? This is EXACTLY why I am opposed to any bailout, because it funds such nonsense. I am thoroughly disgusted.
Patriotic…it’s time for you & all others to remember when we don’t earn taxable income from investmenst or otherwise the IRS isn’t going to be able to collect quarterly taxes…there will be no income to tax…which is the only good part of this for me.
Remember how long it took Enron to go to court? This will be no different.
This event was for independent producers (NOT CEOs/Executives) and was an incentive compensation event for production (of INDEPENDENT producers) over the period of a year’s time.
The “company” cited “American General” is REGULATED and has OVERSIGHT in all 50 states and has from its beginning. Picked on the wrong company here under the umbrella of AIG. American General Life is one of the most solid, is in the black (not the red) and will be one of the first companies sold by AIG to pay back the government. No taxpayer money was used on this event.
Facts need to be straight. And they weren’t in this case. The wrong part of AIG was targeted here.
AIG on “OPM” (pronounced “Opium”)
as it’s called on Wall St “Other Peoples Money”. Using OPM is just like a drug—called Greed and Unaccountability! AIG proved the point at the St Regis hotel ( 9/22-30/08) and I was a witness to some of it—Disgusting!
I was having breakfast with a couple of friends/associates at the pool side restaurant, on Sunday (Sept 28—I had a entry in the Concours) and sitting next to us was 3 dapper guys and 3-4 babes about 10 am—Nothing unusual yet until I notice extra staff hanging at their table—and then the they break out a bottle of Dom Perignon Champagne—Mind you it’s 10AM by the pool and at that Hotel that bottle was probably $350—not counting the tip (if they new anything about champagne the would have had La Grande Dame or Cristal). I mentioned it to my friends and we were impressed as obviously they had done something good and are celebrating. I wanted compliment them—but didn’t. So then within 20 minutes they bring another bottle—I was blown away as they hadn’t even started food but 2 bottles of Dom—Come on? Is this a drug deal or some oil cartel?—Please keep in mind the context of breakfast—by the Pool and 2 bottles of Dom, and no food yet?? As were leaving ( 3 breakfasts for $100 was about 1/3 of their bottle) they were toasting each other—and I suspect they had a couple more bottles—When I read about the AIG party at the St Regis, I hooked the dots—(Invoice below)
We were paying for those guys champagne!—Disgusting, and this is exactly the use of the term “OPM”—AIG should be smart enough to lay low for a while or even if this was planned ahead cut the budget or postpone in light of the situation. The drug called “OPM” Greed and Unaccountable is what many of our financial institutions have been doing with our money—not all but some of the biggest!
The problem we as the public have no organized system that can audit this kinda stuff—Obviously the government can’t—But Wall st has a very organized set of tools to skip/ignore the public. I know as during the DotCom craze—they offered me many ways to get $$ in my pocket without the public knowing—I never did any of them—
This disgusts me so much, to think I am paying for breakfast for those guys.
I don’t have an answer, when our government can barely stay alive –fight a war- let alone be clever enough to get these OPM dealers off the STREET (Wall that is)
When this happens the “Dow Jones” will be spelled “Tao Jones”
Dave
I will certainly Vote NO against Congressman John Campbell 48th district because he supported the bailout.
AIG execs should be punished
Sara I think you need to take your feeble comment to the TV stations & newspapers & to Wash. DC. This is not the place to try to tell that lie.
Barb,
It’s not a lie. American General Life is totally regulated and has oversight in all 50 states. By the federal insurance commissioner. And this trip was an award trip for agents as Garyd56 above says. Precisely. American General Life had absolutely nothing to do with the mess of AIG. And at this event you all are upset over not one cent of your taxpayer money was spent. NONE.
I understand the financial mess in this country at present is very serious and scary but blaming the wrong companies (and American General Life is a solid strong company and will be one of the first to be sold by AIG—AIG has taken American General Life down. If you can’t see that then you understand nothing about the insurance industry across the board in the U.S. None of them. Whether American General Life, or Prudential, or Met Life, etc. They operate the same and they aren’t using taxpayer money and American General Life did NOT use any taxpayer money on this event. Check out how many companies AIG owns. The own to be looking at is AIG-FC….not American General Life, for gosh sakes.
If AIG-FC had been REGULATED as American General Life is, then the whole AIG mess wouldn’t have occurred to begin with. But AIG-FC would have no regulation and the last eight years they have only pushed for more and been allowed more deregulation under Bush.
AIG-FC brought down the whole house of cards and that’s a heck of a lot of companies worldwide.
Do you know about John Campbell? The Republican Rep!
He lived in Shady Canyon, one of the most expensive area in OC. I know exactly his home address in Shady area. It’s worth 7 millions. His landscape needs 6 garderners to take care every other day. His wife has 2 maids in house. And He paid only 4000/month for electric bill.
If you want to pay more taxes .. then vote for John Campbell!
Anyone in the insurance business is familiar with these junkets…and they are completely the opposite of what you were led to believe in the press:
1) they are NOT for AIG executives; they are for independent agents.
2) The independent agents are NOT employees of AIG but are, as the name implies, independent agents who receive 1099’s at the end of the year, NOT 1040’s. In all likelihood, the agents represent 5-10 other insurance companies (assuming they are not captive agents, which is very rare in the insurance industry these days).
3) The St. Regis trip is a common incentive type trip that agents compete for: they have to produce a certain amount of business in a year in order to qualify. Virtually every single insurance company in the United States does it.
4) The trip was probably set up 6-12 months ago. It was an OBLIGATION on the part of AIG to provide these agents with the trip.
5) To renege on this obligation that AIG had towards these independent agents would be TANTAMOUNT TO NOT PAYING THEIR ELECTRICITY BILL.
Justice needs to be served. People go to work everyday trying to survive and make ends meet for them and their family and then you have these SOB ’s going on this lavish trip. It is beyond wrong these people need to be held accountable and then I think they should serve prison time for embezellment! Americans are getting screwed by our own!!!!!!!!!!!!!
Tony, best explanation I’ve seen, but I doubt few will understand it…it seems that you need to be in the insurance business or close to someone in it to “get it.” Again, no taxpayer money was used on this trip. Why can no one understand that? The public thinks they paid for this trip when they didn’t pay one red cent. It’s absurd! Thanks for your clarifications, though. If anyone wants to “get it” then read Tony’s post and know that American General Life was connected to problems with the loan, that AGLife is regulated in all states while deregulation reigns in this country and that no taxpayer money was spent on this trip that was planned and booked over a year ago.
Correction to above:
American General Life was NOT connected to the problems with the AIG fed loan (that was AIG-FC so complain about them)
American General Life is regulated in all 50 states in a time of deregulation (yes, the parent company AIG was very deregulated, but American General Life is REGULATED. OVERSIGHT…for years.)
“Its Time for A Tea Party” They are all liars on our dime.
Earlier today, AIG announced an important policy change - one that we wanted to be sure you knew about.
A short time ago, our Chairman and CEO Ed Liddy said that he has ordered the immediate cancellation of all outside meetings, conferences, and recognition events across AIG, except those that are required by law or that are deemed absolutely critical to sustain our ongoing business needs.
Given AIG’s commitment to our customers, business partners, regulators, and American taxpayers, coupled with the new and very different challenges our company now faces, we take these responsibilities extremely seriously. Their trust is critical to our success. We recognize the need to be sensitive about all company expenditures.
As we move forward, we will continue to focus our efforts to pay back the $85 billion loan from the Federal Reserve Bank of New York as quickly as possible.
You’ve gotta be friggin’ kidding me!!!
Every man, woman, and child in the United States is spending hundreds of thousands of dollars on this bullsh*t bailout, and these pricks are living it up like it’s some fraternity party!
These execs should be lined up and should have to face the average, everyday American citizen, like myself.
I could live VERY, VERY comfortably for the better part of a decade on that amount of money. $440,000. That’s just gross ignorance.
I would kick the sh*t outta these retards for being idiotic.
What does that say about this bailout?!?
Instead of being grateful and spending wisely, these morons are out acting like they’re f’n Jay-Z or something.
What’s next on the agenda? Private jets? Gas stations installed at your homes?
I swear to GOD on high, this whole f*cking nation is out of control.
The greed is so widespread, i don’t think we are capable of rehabilitation.
The rot goes so deep in politics, it’s just assumed that everyone is crooked.
I’m so sick about this. If all hell isn’t raised about this, everyone in this country has become so f*cking lathargic that you may as well all pull the plugs on yourselves. You’re all brain dead and zombie’s if anybody is willing to stand for this.
So, in closing, AIG executives…
You’re all ignorant swine who deserve to be in the gutter.
Do yourselves and everyone else a favor. Go to the top of AIG headquarters, and jump off it!
What Cam said!!!!!
Thank you, Sara, for your kind words.
For confirmation of these points, see: http://tinyurl.com/4ys9p2
.
Why are we barking about a $400k party when it’s an incentive for sales for people who live on comission sales. Not a lofty executive making millions of dollars. Like Sara said, it is not one of the bailout companies.
AIG got in trouble investing in real estate…the insurance entity continues to operate in the black.
Here’s my problem. The public is irate about the $400K…what about the $110 BILLION increase from the $700 to $810 bilion bailout.
Dave R….there are standard meals at all the incentive meetings that many companies have. Any extras (like expensive champane) are NOT paid by the company. If there were only 8 people at that expensive breakfast…it was not a company event. The convention was for 100 agents. It was a MAYBE a group of people that POSSIBLY were from AIG. Or maybe some people that just maxxed their credit cards. I’ve been to the Regis on a Sunday and you can find groups like that on any Sunday. Some people still have big bucks or spend like they do.
Your dots are very lopsided….
Hey I was at the St Regis about a month ago for the weekend, and it sure is damn nice.
Golf course was pretty average though which explains the low cost of the golf on that trip.
AIG did cancel a similar event planned in Half Moon Bay.
However, on the AIG website is this following statement:
“The event, mischaracterized as an “Executive Retreat,” was held by one of AIG’s insurance subsidiaries for independent life insurance agents, not for AIG employees.”
So Obama was incorrect in his statement to fire the executives. What he really meant to say was fire the self-employed … and demand the money back.
Nice going Obama!
The information (incorrect) came directly from the Congressional Oversight Committee–just unbelievable. Obama followed up from them and I didn’t like it, although, he still has my vote over McCain. McCain, you recall, “suspended” his campaign and rushed up to DC like some kind of hero and helped make a bigger mess. The whole thing got politized, whether the Wall Street bailout or the AIG loan and issues related or not to it. I don’t believe a thing I hear from the media at this point.
I think you summed it up, Sara.
Both Obama and McCain both returned to Washington and was it a mere show - I too agree.
They were both back debating that Friday. Obama is a good speaker; however, he never answers nor gives direct solutions to the issues and is holding off until the end to begin his solutions.
Every company that gets money and individuals have and will spend money where it could otherwise be used to reduce debt. I have a meal out with the wife and some with the kids and the last thing I want is my $300 dinner bill to be thrown out in the paper when (if) the government bails $100,000 off on my loan.
People do not see how big these numbers are and just here $85 Billion and not realize that the percentage of a $400K reward party for small business owners is 0.0005% which is the same as me spending $6.00 on lunch and being given $1.3Million to pay off my house and being attacked for eating at Taco Bell.
The whole issue of spending $400K is pocket change when we look at what $85,000,000,000.00 really represents.
Alan,
The issue should have been clarified long before now (and could have been.) The ones to have clarified it were the members of the Congressional Oversight Committee (GOP and Dems) yet they did not. The media has carried the story on and one as have newpapers.
Your example re: the money is a good one. The point too, is that “AIG” is perceived as one company and it’s many companies and only ONE company caused the downfull (AIG–Financial Products–interesting we’re hearing nothing about that from anyone it seems.)
I called every representatives office connected to the Congressional Oversight Committee as I was appalled at the misinformation they gave out to confuse everyone the morning of the AIG Congressional oversight meeting. You don’t mix up American General and Joe Cassano—it’s like oil and vinegar.
Obama gets my vote because he is change for America, he has presented policies where I think McCain has presented distractions from the real concerns. (Recall, too, that Obama was not for rushing to Washington–McCain went off in an erratic way and Bush then called them both. Obama HAD to go then and probably due to him we did get some safeguards in place. Obama is steady to me, respected around the world and that is key. He also was against the Iraq war which has caused us more lives and money than is imaginable. A war that need not be fought and will not be “won.” I haven’t liked McCain/Palin’s negative campaign from the very beginning. I’ve been appalled actually. My observations and opinions, of course.
All that is critical but the subject here is the event as we’ve discussed. Perhaps American General could have sent a letter to the Congressional Oversight Committee right before the trip so no misinterpretation was made. I think American General was just trying to do its job and wasn’t using taxpayer money anyway.
May American General continue to compete (with all the other companies who ARE having events for their qualifiers, ie, independent agents) so that we WILL see the money paid pack from the loan (at least from fiscally sound American General as well as many other of the other companies under the umbrella of AIG.
Thanks for your comments.
They should not be bailed out. How about homeowners who own a home that’s worth 500,000 and they only owe 100,000. They want to maybe buy a new car and install some new carpet, maybe take a vacation. Why refinance and take all you can get? Why not just take what’s needed for the car, carpet, vacation, etc.? No need to take as much as you can get.
The function discussed in this article had already been paid for…it would have cost more to cancel…with cancellation fees, etc. If you want AIG companies to be able to compete with other companies in order to be SOLD to then pay off the fed loan (NOT bailout) then you have to allow them to do business in similar ways that their competitors are…especially if the individual companies can afford it.
Note that the hotels in Mumbai India were insured by one of AIG’s companies. I wonder if many people on the board would say that the AIG company should not make good on the insurance policies…don’t pay out the money. Hey, they’re using taxpayer money!!!! (They’re not. People just don’t understand this whole situation and gotta have a scapegoat for the economic situation in the US, I guess.0
Come on you CAN’T fire them because they are Jewish. If you did them you would be jew haters. We don’t need anymore people hating us.