American International Group Inc. spent US$440,000 at the St. Regis resort in Monarch Beach a week after the bailout, according to the Committee on Oversight and Government Reform in the U.S. I guess they figured since the American people were footing the bill, it was no big deal. Like a free vacation. According to the National Post:
The St. Regis expense “seems very inappropriate,” Mr. 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 Mr. 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.
The group occupied 60 rooms, while AIG has over 110,000 employees worldwide. I am not sure how they fit them all into the rooms, but I guess it’s a lean time and we all have to make sacrifices.
14 responses so far ↓
PETER SPINA // October 8, 2008 at 3:21 pm
THEY SHOULD ALL BE FIRED ///FIRST THEY HAVE TO PAY BACK THE VACATION MONEY AND FOR THERE PUNISHMENT THEY SHOULD BE DROPED OFF IN THE SLUMS WHERE THEY HAVE TO RESIDE FOR TEN DAYS LIKE THE ANIMALS THEY ARE///THEY HAVE NO RESPECT FOR HUMAN KIND///THE COUNTRY IS IN TRUBLE AND THEY GO SWIMING////EVERY DOG HAS IT DAY////SHAME ON THEM////WELL THEY ALWAYS MADE COMENTS ABOUT INS. AGENTS THAT THINGS GOT BAD SINCE THEY GOT THERE SECOND MERCEDES///LITTLE WORK AND A LOT OF PLAY///
Robert Bland // October 8, 2008 at 5:45 pm
I’m an AIG agent and will stand up for them here. The trip, which was a reward trip for independent agents and which was booked a year in advance, cost $440,000 for about 150 people in total, or cost $2,933 per head. All major U.S. life insurers have these kinds of trips, which are very important to some independent agents.
If AIG’s life units (all of which are safe and highly rated on their own according to the 50 state insuance commissioners unlike the parent company AIG in New York that is bankrupt and under federal control), were to halt all such trips, they’d lose representation by the best independent agents who would simply switch their business over time to the life companies that continued to provide such reward trips. Spending $2,999 per agent as a thank-you for producing $1 million or more in business is sound business and not at all extravagent.
CINDY // October 8, 2008 at 6:31 pm
TODAY AIG WAS GIVEN AN ADDTIIONAL 35 MILLION DOLLARS FROM THE GOVERNMENT ON TOP OF WE ALREADY GAVE THEM
rider3 // October 8, 2008 at 6:39 pm
I feel as if we should all just stop paying our mortgages and refuse eviction. These big-shots, as well as the others we bailed out, should be paying for the mess they created — not us. This is disgusting and just purely shameful, not that they have any conscience to feel shame. F’ them all. I hope Karma gets them.
Philip Escobedo // October 8, 2008 at 6:47 pm
I definitely think all their money and assets should be seized by the government to help pay for the bailout. Not a lot of money, ALL of their money and assets. Leave them on the street to fend for themselves.
Update: AIG Vacation Defended, U.S. Gives AIG Another $38 Billion « canadian maple // October 8, 2008 at 8:29 pm
[...] 8, 2008 · No Comments While AIG has been defending their recent vacation to the tune of $440,000 to a committee in the U.S., it was decided that the obvious course would be to give them even more [...]
Angry Max // October 9, 2008 at 12:03 pm
Kapitalism is over… WAKE UP USA!
Kane Fielding // October 9, 2008 at 2:45 pm
You can’t blame everything on AIG Agents. The democratic party are the ones who signed the bill forcing companies like AIG to agree to the high risk loans
Chad // October 9, 2008 at 5:43 pm
I agree with Philip….don’t seize everything they have, not just money…..take everything. I was not even in favor of the whole bailing them out, but them doing this is a complete slap in the face.
I changed my insurance today and hope every other AIG customer does the same. The government shouldn’t have bailed them out because if we all band together and boycott them…..they’ll be broke again soon!!
S. Fanara // October 11, 2008 at 12:50 pm
Dear Robert Bland,
I understand your point about trips like that being important to independent agents and that a reward system helps keep in the company valuable people. But that’s not a fair defense (if you allow me) in this specific case. Any company borrowing money, in this instance from taxpayers, not banks or other financial institutions, should watch expenses even more closely than they should usually do. If my company would happen to be in dire straits, I would be the first to cancel my own unnecessary expenses. That would include expensive vacations, bonuses and the likes! That’s because when the company can afford it because produced wealth, then rewards should be given out to those who helped produce such wealth, and the same should apply when the company is at loss!
No company would ask to its employees to help pay back its losses (although through the bailout it’s actually happening to a certain degree). But I really don’t get how you can still defend the unnecessary vacation in time of financial troubles. Sure the 440K would not solve the company problems, but believe me when I say that if AIG would have announced canceling such vacation and bonuses the company image would have benefited from it in a unmeasurable way!
S. Fanara // October 11, 2008 at 1:13 pm
Kane, get your fact straight. Deregulation for wall street, financial institutions and the likes, has been pushed and supported by republicans not democrats. Do I need to mention the “Keating 5″ scandal, which involved among others John McCain? That was just the tip of the iceberg. Then came sub-prime and all kinds of uncontrolled operations that eventually and inevitably, screwed main street and wall street both! It’s unforgivable that such lack of control has been allowed for companies who can so directly affect the health of a country and (post-globalization) the entire world! Now that it finally exploded leaving massive casualties behind, deregulation is now seen for what it has always been a the time-bomb.
We seem to have forgotten history and why regulations were put into place after the great depression. One of the resulting bodies of control established was the SEC and with reason! Add to it that corruption, in times of financial flourishing (or so perceived), went unpunished, also by keeping regulations out of the picture allowing the entire financial world to make and bend rules in order to maximize profits through all kind of scams where unaware investors were dragged into. This should give you one of the multiple factors why we ended up where we are now.
S. Fanara // October 11, 2008 at 1:14 pm
Angry Max, what an empty statement… you better wake up! While you were sleeping “Kapitalism” went global!
S. Fanara // October 11, 2008 at 1:22 pm
Philip E. and Chad, I completely agree with you although I think that’s just a starter. Way more should be done to bring accountability into the equation. Does anyone realize that if you and I create a company and we eventually go under for criminal mismanagement, scandals, scams and/or other reasons involving illegality, we will not get $85 billion… the only thing we will get will be a sentence to confiscate all our assets and do time! Why should it be any different for anybody else? Last time I checked this country stated that we are all equal under the law and one is not guilty until prove of the contrary is given beyond any reasonable doubt… so let bring back accountability for fraud masters in US!
Danielle // October 11, 2008 at 4:01 pm
@ S. Fanara – Well said – I am glad that this is issue is being discussed in homes across the U.S. (and Canada). We take for granted that corporations have a social responsibility, and too often they get away with ignoring this responsibility. It is time they are held to account for this. Not only AIG, but all corporations who work to cheat the public. Large corporations should be held to the same standards of ethics.