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AIG’s “outrageous expenditures” cause more trouble
October 16th, 2008, 12:49 pm · 15 Comments · posted by Teri Sforza, Register staff writer
New York attorney general Andrew M. Cuomo has threatened to move against
American International Group to recover costs for “unwarranted and outrageous expenditures” - including executive bonuses, a lavish golf outing and a trip to England to hunt partridges that cost nearly $100,000 all by itself.
“AIG’s belief is that they had the party, and the taxpayers will have the hangover,” Cuomo said at a news conference. He said he could bring civil charges if AIG didn’t work to recover big bonuses paid to executives.
AIG said it will cooperate, was sorry that the hunting trip wasn’t canceled, and that it has suspended all non-essential businesses outings. Read the full story here.
The execesses of AIG’s subsidiaries have been the source of much outrage since the government’s $85 billion bailout (and subsequent $38 billion loan). The Watchdog reported first on the lavish retreat for top-performing insurance agents at the St. Regis Monarch Beach Resort.
More Watchdog:
- AIG subsidiary parties in style in OC, two weeks after bailout
- AIG’s St. Regis blowout bill: $443,344
- Saturday Night Live skewers AIG excesses
- Obama on AIG’s $400,000 party: ‘Fire the scoundrels!’
- Yet another AIG subsidiary parties hearty days after bailout
- Cartoon zinger lampoons AIG bailout
- Prez didn’t push for bailout so execs could get facials
- Behind the AIG party: A look at the St. Regis
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$83,000.00 trip (not $100,000 as indicated in the article)
$123,000,000,000.00
equals
0.0000675%
If the government paid off your 1.23 Million mortgage this would be the same as you spending $0.83 on something you really did not need.
Is this Orange County news because it is the wasteful, pretntious spending of other people’s money?
Thanks for the update…expose the AIG secrets…and let the Gov’t get our monies back!
Alan, Your point seems to minimize the actions of AIG execs. I guess we’ll let them take the money out of your checking account.
No, it’s OC news because one of their lavish trips was to the St. Regis.
It is kind of Orange County news seeing that every living America is paying roughly $425.00 to loan AIG enough to stay in business.
I still like Obama’s comment in reference to saving the jobs of older Americans you sometimes have to fire people and demand money back and let the remaining 120,000 employees seek unemployment.
$123B is a number that really does not make any sense and to point out the same $83,000 business trip is completely hilarious as it is mere pennies to the big number.
Don’t forget to mention that this was for the workers and not the company execs.
Alan,
As you noted, this is basically a loan (we’re taking an equity stake; essentially buying stock in them). We expect most of our money back when AIG uses our capital injection to right the ship.
Let’s say you just bought a 78% share of a company that was about to go bankrupt. You’re hoping to see a return here. Would you be happy with executives spending hundreds of thousands on resort trips right after their company failed?
This is the change that Barrack Hussein Obama is always talking about. Barrack Hussein Obama voted for it along with Biden and McCain the only one that knows how to balance a budget is Palin. Vote McCain and maybe we can end up with the only one that has any common sense.
For the life of me I can’t belive how ba!!sy these people are. I do pray all of them a prosecuted to the fullest extent of the law.
I agree Damon that it is not the headline that any of us want to see in the paper. Neither did we want to hear Obama say he wanted AIG to lay off all 120,000 employees in an effort to secure the jobs of older Americans.
To focus on these “small” expenses in comparison to 123,000,000,000.00 is arguing that it is wrong for me to buy a Big Gulp after the government loans me $1.23M to pay off most of my mortgage.
Focusing on trips that award small business owners like the 400K or this 80K expense takes our focus off the trillion dollars that is being handed to these failing businesses.
We need to look for solutions not pointing out mere pocket change expenses. However, it sells papers and I have no problem over someone buying a cup of coffee after the government loans them a million dollars..
Those trips and parties were most certainly already paid for prior to the bailout, so abondoning the trips wouldn’t have made any sense.
However, I have always felt, for decades, that executives’ pay is completely out of whack, especially when compared to their executive peers around the globe. It doesn’t make any sense to pay high-end executives outrageous sums of money that make them fabulously wealthy. What kind of a well-run business organization would waste moeny like that?
Just stop these rediculous fancy trips. Hopefully they get a faceful of
animal doo thrown at them by the anti British hunters. Let them pay for themselves if they want to go, pay for the trip themselves. Its in your face[hopefully] this time. They have had enough fun with our money.
Again this will pass after all the complaints have died down.
Did someone say Palin can balance our national budget? LOL!!!!!!!!!!!!!!!!!! Palin is a MORON! MORON! If this idiot gets anywhere near the whitehouse it’ll be a dark dark day for the US. SHE IS A PIG!!!!!!!!!!!!!!!!!!!!!!!
UHG,
Do you think a solo president or vice president will be able to balance the economy. Remember they are running by advisors/congress… So, tell me all CEOs from bankcrupt investment firms, were they experienced with balancing? If you say Yes, then why did they let their firms bankcrupted?
Your comment makes nonsense to me.