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AIG calls off lobbyists, cancels events totalling $80 million
October 20th, 2008, 11:00 am · 15 Comments · posted by Teri Sforza, Register staff writer
In the mea culpa department, American International Group said it will:
- stop lobbying to soften new federal regulations (designed to avoid the mortgage fraud and abuses that got it into trouble in the first place),
- and has cancelled about 160 upcoming conferences and events, whose cost would have beeen some $80 million, AIG spokesman Nick Ashooh told the Wall Street Journal today.
Congress and New York’s attorney general are probing a series of golden parachutes and lavish events thrown by AIG and its subsidiaries in the days after its government rescue last month (including the $443,344 splurge at our very own St. Regis Monarch Beach Resort for independent insurance agents).
“We’re reviewing all of our expenses and activities. As part of that we have suspended lobbying activities,” Ashooh told the WSJ.
Congress wants to know exactly how AIG is using more than $120 billion loaned by the government to keep the company afloat; AIG must produce a dizzying array of documents by Nov. 14. Meantime, read the WSJ story here.
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LIKE DUH.
Are we supposed to congratulate them?
They decided they would need some extra cash for the payouts they have to make on Oct. 21, 2008. To pay off the “Insurance policies” the hedge fund scum bags took out on Leighman before they set fire to it.
I’m guessing somewhere in the neiborhood of umm “37.8 Billion?”
Germany told there banks hears the money freeze your wages max $600,000 per year no bonuses and no trips no conferences or events and they most pay back the money and most of there banks are not taking the bail out they are using there own money.
and what about bonuses and outragueous pay?/?
How very big of them. Geesh….
Perhaps John McCain and his cohort Sarah Palin can shed some light on this since it deals with lobbyist. “You Betcha! ( wink wink).
Duh, the lighbulbs have finally come on! This company makes me sick! Absoutely no regard for money or their customers or the way they throw money around in this terrible “economic crisis”! I hope the majority of the high flying employees are soon in the unemployment office that will soon be out of money!
Now how much did they have to spend in cancellation fees?
I would assume at least $40M (50% deposits on most events).
Then of course they saved $40M.
Cup is half empty or half full.
At least Obama will not be telling Americas that these companies need to fire all the executives and lay off 120,000 workers over pocket change.
However, $40M compared to $120B is a little more measurable versus the 400K.
If the government paid off the majority of my mortgage at $1.2M this would be the same as me spending $400.00 to buy an annual pass to Disneyland after the government bailed me out.
Now that is a headline that is measurable. Man buys him and his wife annual passes to Disneyland after government loans him $1.2M to save his house.
However, we can look at the new headline this story creates, “Man cancels pass and pays $400.00 in light of receiving a $1.2M bailout loan.”
I could see people getting upset and it would not be right for me to do such shortly after a bailout loan.
To put this in a better light… Let us say the government loaned you $20,000.00 in unemployment benefits to help your family. It would be the same you you spending about $7.00 to eat at McDonald’s instead of cooking at home.
Can we be upset with someone for eating at McDonald’s if he is on unemployment that he promises to pay back to the government?
Let them go out of business and prosecute their executives, that’s the true American way. It make no sense to call this country capitalist but pour tax payers money (without any consent from tax payers) to these businesses.
“Perhaps John McCain and his cohort Sarah Palin can shed some light on this since it deals with lobbyist.”
well, we know Obama won’t… when did he ever see a lobbyist dollar, campaign donation, or earmark he didn’t love? I didn’t even bring up questions like, who paid for his college and/or law school tuition since he never reported having any outstanding student loans when he was first elected to office, despite claiming he was still “paying them off” at the time.
so anything else is worth a shot. Go McCain
Glad to not work in their legal department!
I’m curious to know how much AIG is to pay out as of today on the insurance policies they backed for the hedge funds against Leighman failing?
Also I’d love to know:
List of names in government who approved / pushed for bailout of AIG.
How many of these names are associated to any of these hedge funds who needed AIG to survive until Oct. 21, 2008 for the insurance policies to come to payout.
If any connection is found between government officials and this insurance blood money, they should be investigated, charged and jailed.
I’m a retired AIG employee and have lost over $25,000 in my 401K. AIG just gave that amount to a charity. Well I guess I better set up a charity. This company is rotten to the core, always has been and $120 billion isn’t going to change that.
JB
John, Sorry about your 25K loss. The struggling rank and file are really hurting over this sorry mess. You would think the government would of been watching the cookie jar. I appears they had both hands in it.