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AIG after bailout scandal, executives party in California
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by Tina Kells | October 3, 2008 at 09:44 am
21839 views | 13 Recommendations | 64 comments
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The OC Watchdog Blog has reported that American International Group corporate executives, and representatives of various AIG subsidiaries, were partying in style at the posh St. Regis Monarch Beach Resort (see attached YouTube videos for a look at the hotel), in Southern California, just 2 weeks after taxpayers bailed out the insurance corporation for $85 billion.
Was this really an effective use of taxpayer money? And after this scandal, why would the U.S. Federal Reserve see fit lend AIG another $37.8 billion in bailout bill funding? Somebody has clearly dropped the ball on this one; or does the U.S. government just not care that taxpayer money is being used to fund elaborate spa vacations for executives and their favourite AIG insurance sales reps?
Remember how, just last month, AIG teetered on the brink of financial apocalypse? The effects of the insurance giant's imminent collapse were deemed so dire that the Federal Reserve galloped to the rescue with $85 billion of your (and my) tax dollars. What a difference two weeks make.
Last Friday, as the rest of America was in financial crisis overload, preparing to watch the Presidential debates, and reeling from the aftershocks of Congress rejecting the first bailout plan; executives and insurance representatives from AIG subsidiaries were living it up with champagne and caviar in a swanky ocean front hotel.
No word yet as to what the conference was about, or why it wasn't canceled after the taxpayer funded bailout went through, but AIG did offer a weak explanation that the event was "not what it seems." Now that the American taxpayer is effectively footing the bill for these types of questionable corporate decisions, an off-the-cuff answer is as insulting as the event was inappropriate.
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.
If this is how AIG executives prioritized spending before the financial crisis hit, no wonder the insurance giant was sinking! While average Americans are losing their homes and tightening their belts, the fat-cat executives in the US financial sector don't appear to be losing a thing - not even unnecessary perks like this "conference."
In the words of Speaker of the House Pelosi, after the second bailout plan passed in Congress, executives in the financial sector have operated, "unregulated and unsupervised (and) they created chaos." In the post-vote speech she said that this would change with the passage of the second bailout proposal.
Let's hope the US government does a better job of "supervising" the spending of the more than $800 billion they are giving to financial giants, like AIG, in the latest bailout deal. If this incident is any indication, taxpayers may just be funding another unsupervised financial sector party.
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.
More from NowPublic.com on the AIG executives scandal
- After Bailout, AIG Execs Head to California Resort
- After Bailout: Let the good times roll at taxpayers' expense!
What is NowPublic?
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Claimant 06-00190711 (not verified)
Crowd Power
Tina Kells
Vancouver, Canada
Most RecentMost Recommended Comments (64)
at 10:23 on October 3rd, 2008
We've all been ripped off. and the Feds are just going to 'print' up more money since they obviously don't have it.
at 19:58 on October 3rd, 2008
We lost complete control of our country.The bill lost but they didn't like that outcome so lets vote on it again and again and again until it passes.Lets add raises to our saleries and perks and benifits to it so everyone votes for it.Lets not listen to the people,what do they know.I give up on my country we gave it away to low life scum bags who are in it for their own benifit.I will never vote again.welcome to The United States of Corruption.
at 16:23 on January 4th, 2009
You think that's messed up. You should look at it from a claimant's stand point. Sept.16 2008 AIG got bailed out with $85 BILLION right, less than a week later they're at St. Regis partying next, OCTOBER 18, 2008, a letter is sent out to me saying that my case has been dropped and that they are not paying for the surgery that I had in May which was already approved and they blamed it on another injury that I never had and never existed. When I asked the adjuster about the situation and tried to clear it up calmly, she hung up on me. So, now I have to pay for that surgery and all the medications that were approved by their prescription plan. Need I even say that I haven't been working since May? They are f*cked up and I am gonna get these people with a suit ASAP!
If a AIG rep reads this, my claim number is #06-00190711 in NJ. Don't hesitate to call me. I will gladly take your calls at any time of the day, or night! Just know that we are not through our relationship just yet. I have something for you!!! sj_king_d_a_d@yahoo.com
at 10:09 on October 3rd, 2008
More partying tonight! and singing: 'They bought our toxic assets when we tossed in the pork!'
at 10:11 on October 3rd, 2008
I'm Canadian, and I feel ripped off by this news!!!!
at 10:25 on October 3rd, 2008
Tina Kells, I like this story. It's good stuff.
at 10:33 on October 3rd, 2008
Vote for McCain. Obama is in with the crooks.
at 15:40 on October 3rd, 2008
I was there. Was a good time. Why can't we have some fun these days? Everyone is so negative. I'm in a party mood.
at 18:44 on October 3rd, 2008
They party on our tax dollars. Who is to blame? Find out for yourselves go and watch this video.
http://www.youtube.com/watch?v=1RZVw3no2A4
at 20:46 on October 3rd, 2008
Tina Kells, I like this story. It's good stuff. Let the waterslide to depravity begin.
at 00:14 on October 4th, 2008
Are we funding Sharia Financing? Funding the agenda of Sharia, our own demise? AIG is up to its neck in it. First thing they should do is get rid of it.
at 08:55 on October 4th, 2008
I am so angry I could spit. I've been fighting with A.I.G. to cash in my annuity (even willing to take huge penalties) for 3 weeks now. They are nothing more than greedy thieves.
at 10:07 on October 7th, 2008
Well, I don't know about the rest of you, but my husband and I watched the debate thanks to Hurricane Ike in a hotel room that certainly DID NOT cost $1000.00 per night, . Our evenings menu included munching on pretzels and sandwiches from Domino's on a coffee table draped with a large bath towel. As far as anyone setting up a lengthy bar stocked with bottles of liquor, well that didn't happen either. We washed our cuisine down with bottles of water purchased from the vending machine. No fine crystal stemware, just the plastic bottle the water comes in. And to think the government didn't even offer to pay for our room or food!!
at 10:49 on October 7th, 2008
and just think, this crisis will once again happen down the road, guarantee it will and us tax payers will once again be bailing them out w/o any say in the matter. Like we vote every year, we should be able to vote on a bailout or no bailout.....Leave it up to the American's, the taxpayers......and rest assure, how we can not be bailed out on our bad judgement calls, we are told "NO!" for help, these firms/companies/Wall Street will be told "NO!"
at 16:58 on October 7th, 2008
Why doesn't congress indite, all executives deserve a lesson. We the tax payers bail them out so they should relinquish their salaries or go to jail for mismanagement of funds or something in that order. It was their bad business practices that got these corporations where they are today so why not let them pay. Most of of can't afford to eat out for dinner anymore but to these so called high powered executives it's a joke that they have the audacity to give themselves raises and spend money foolishly at the taxpayers expense.
at 17:15 on October 7th, 2008
I can't believe this crap. I'm so pissed. Those execs should be crucified and not only that, senate should force them to forfeit the golden umbrella and pay back every cent they spent of our money- How dare they! I never hate somebody or something but that feeling is slowly surfacing on the actions of what they just did.
at 17:16 on October 7th, 2008
This is crap, They should have to replace the money and go to jail. If you or I did that this would be are punishment.
at 17:36 on October 7th, 2008
I spent the weekend on my couch because I have had to borrow from my overdraft. Not quite the lavish party AIG employees had. If my hard earned money from teaching was really spent on this I am angy. The government offered $600 to me in the Spring which barely helped pay the rent in NY. Something has to change.
at 17:37 on October 7th, 2008
I spent the weekend on my couch because I have had to borrow from my overdraft. Not quite the lavish party AIG employees had. If my hard earned money from teaching was really spent on this I am angry. The government offered $600 to me in the Spring which barely helped pay the rent in NY. Something has to change.
at 18:37 on October 7th, 2008
This isn't completely what it seems, and no I don't work for AIG, or have any connection to them.
The trip was planned months in advance and was intended as an incentive for independent sales people.Incentive travel programs such as this are not put together on a whim with a couple days planning and a bunch of cash thrown in.
To cancel the trip completely would have incurred countless financial penalties from the hotel and other service providers that AIG would have been forced to pay, while those in the hospitality/service industry local to Orange County, California, would likely not have received the hourly wages and tips vital to their livelihoods. The AIG sales people - regular, hard working Americans like you and me - who had worked to achieve this trip, meanwhile, would have had nothing to show for their efforts.
It's easy to characterize this issue as corporate greed and waste at its worst in difficult economic times, as commentators from both ends of the political spectrum have done, but if you understand the nuances, AIG had no choice, and the best solution was for this trip to happen.
at 19:27 on October 7th, 2008
Well, Tommy
The cancellation fees would have probably been less and considering they may or may not have an account with the hotel firm and considering the situation, if it didn't happen most of the money would have been returned, Why? Because the Hotel wants future business!
at 20:08 on October 7th, 2008
Are you kidding??? With the multi million golden umbrella bonus- who or what do you think should have been done? The cancellation fees would not have added up to $400K. Realize something here- we are not stupid or dummies. Most of us are hard working people and own businesses or affiliated one way or another with a corporation. I happen to own my own business and actually cancelled a trip to Vegas for my managers for their appreciation week. Although I was not going to spend $400K, but I was certainly going to spend about $30K. Instead I am now going to take them out for a nice dinner somewhere locally. I know all about planned trips & cancellation fees. That is just a cheap cop-out. Corporations have ways to make deals and get deals for their employees. Don't be blind to all this hype. You're talking to someone whos been around the block and know how things work. Trust me, I have certainly taken advantage of 'offerings' in my time.
at 21:32 on October 7th, 2008
Our goverment should look into this and fire the top heads who allowed for this
We have been taken advantage and this is so sad that we the people are hands are so tied
I am not for Obama but tonight in the debate he even said the people who allowed for this should be fired
at 01:35 on October 8th, 2008
what a freckin shame!!! I think all of us americans or tax payers are really pissed off at this. What is the GOV doing for the people who are about to lose there homes, nothing!I'm sure they aren't getting bailed out. the white collar worker f*(ks the rest of us over and they get bailed out. If the tables are turned I think they (GOV) would say tough shit. THANKS BUSH for 8 years for nothing you A-hole!!! you F*&Ked this country up MORON!!!!. BUSH IS A A-HOLE!!...
at 04:34 on October 8th, 2008
This is down right pathetic, There should have been a plan in place for these exec's if there out spending and doing illegal practices with American tax dollars. Lets stop calling these people Wall Street and AIG and so forth, lets start naming names of these key players and CEOs that are the root these problems were experiencing and remove them. We were FORCED to give 700 &85 billion dollars to bail out the same people who created this problem. Also we do not have enough parameters in place to put these illegal practices to a hault and punishment penalties for those caught doing it again. Thats like writing a check to the robber who just broke into your home and stole the food off your family's table the first time and saying thanks for screwing me again. Remember these same people that we call Wall street sit on boards with half of these politicans and probably make back door deals on the side. Washington as well as Wall street both need serious house cleaning.
at 09:02 on October 8th, 2008
Ok I'm so upset by this. What a fricken joke. The average american is struggling to pay there monthly bills and these jokers are living off our suffering. When times are tight in my house we buckle down, eat mac and cheese and just stay home. I wish when times get tough I could offer my kids and hubby and nice vacation. Goodness we have to save and save just to go camping for a weekend. I'm completly pissed off and extremely bitter about this. AIG should be forced to give "us" our money back and they should go to jail. They got themselves into this mess, let them figure it . When I spend to much on grocery and am a little short on the rest of my bills am I offered a flipping BAIL out. Hell no.
THis is the kind kind of corruption that is going to bring this country to its knees.
at 09:02 on October 8th, 2008
I don't even know what to say, its makes me sad to think they are have a great time at our expence, do they even know what they have done to this country, they ( the people that allowed this need to be fired) they did this to their selfs, forcing people out of their homes like it was nothing, instead of working with the home owners, no one wants to loose their home, I being one of the misfortune that has lost my home and no one came and bailed me out, let them fold for all i give a shit, i have to decied if i buy a gallan of gas or a gallan of milk, maybe aig could make that dession for me, since they do so well making dession like the party they all had a good time at....
at 13:40 on October 8th, 2008
There are none so blind as those who refuse to see what has been going on for decades. The rich and powerful, are always bailed out, even when the most severe charges are brought against them. Look how movie stars get out of jail, and situations that ordinary citizens would be tarred and feathered for.
All of the huge corporations pull the wool over the citizenry when they sell their wares, promising so much, they cannot be refused. Then what do they do once we have signed on the dotted line, but move the head office of the company to a state where their promises legally do not have to be honored. Delaware, is full of them.
I think we should all invest in bonds, that may not offer high dividends but they are sure things forever.
The laugh I get out of McCain, is that of his plan to sweep lobbiest out of the door if he ever got to the oval office. He would have to get rid of his whole team of backers and workers behind the scene.
One thing that is the most unsettling piece of information is McCain's medical condition. He has Invasive Melanoma, Stage 2A/3, and has to be constantly monitered for the appearance of suspicious moles that have to be removed for fear they would be cancerous. Think about it, if they are new cancer findings, and he has to have treatments that would leave him to weak to function in the Oval office, Palin would occupy his chair! Talk about a HUGE dilema ... that sure would be one.
at 13:47 on October 8th, 2008
Why is everyone complaining after the fact. You don't think that someone new this was going on when it was happening??? why didn't all those news people who like to be the first in breaking news show up when AIG was partying and broadcast it live so we could see are tax money in action. Were was TMZ they have a field day with everyone else why not Corporate America. It reminds me of any one who is willing to do something wrong because they are not worried about the consequences. No different than the kid who steals a candy knowing if caught he will get in trouble. Gratification first maybe?? consequences later ( if you get caught). Even if AIG still had to pay the money maybe the right thing the Executives could of done was not to go at all. Let everyone still be paid send the food to a food bank. I know lots of people who need a Spa Day. Give the hotel rooms to a homeless person or maybe just do nothing and let all those venders make all the extra money to put into our economy. Just think getting paid for a job and it ends up being 100% profit!!! think what all those venders could of done with a piece of $400K. Most likely they could get caught up on their mortgage paymentsJ
at 14:20 on October 8th, 2008
American General Life is TOTALLY REGULATED AND HAS OVERSIGHT IN ALL 50 STATES (unlike many companies under the umbrella of AIG.0
The company being erroneously smeared here is a sound one and TAX PAYER MONEY WAS NOT USED ON THIS EVENT. THE EVENT WAS AN INCENTIVE COMPENSATION ONE FOR INDEPENDENT LIFE INSURANCE PRODUCERS. This was not an event for AIG CEOs.
American General Life had not one thing to do with the AIG crash problem or bailout. Find out the companies that DID cause the problems and complain about them.
PEOPLE, NONE OF YOUR TAX MONEY WENT TO THIS EVENT!
American General Life will most likely be one of the first companies sold off (so that AIG can repay the gov't) BECAUSE of the strength of the company. It is fiscally sound and again is REGULATED by the insurance commission in all 50 states. This is NOT the company to slam within AIG and your money went to NOTHING at this event.