CHARLOTTE — A handful of top executives from American International Group Inc. spent thousands of dollars during a recent English hunting trip, even as the New York-based insurer asked for an additional $37.8 billion loan from the Federal Reserve.
The news comes as New York Attorney General Andrew Cuomo on Wednesday told the insurance giant to do away with golden parachutes for executives, golf outings and parties while taking government money to stay afloat.
Cuomo said he has the power under state business law to review and possibly rescind any inappropriate AIG spending as long as the Federal Reserve is propping up the huge insurer with almost $123 billion in loans announced since Sept. 16.
"This was an annual event for customers of the AIG property casualty insurance companies in the U.K. and Europe, and planned months before the Federal Reserve Bank of New York's loan to AIG," company spokesman Peter Tulupman said Wednesday morning.
In a prepared statement later in the day, the company said, "We will continue to take all measures necessary to ensure that these activities cease immediately. AIG's priority is to continue focusing on actions necessary to repay the Federal Reserve loan and emerge as a vital, ongoing business."
AIG officials declined to say which AIG executives attended the trip, which reports have said racked up an $86,000 tab. News of the hunting trip surfaced just days after AIG received an additional $37.8 billion loan from the Federal Reserve, on top of a previous $85 billion emergency loan granted last month.
The company said last week it would stop "all non-essential conferences, meetings and activities that do not clearly maximize value and service given the current conditions."
Last month, and just days after the U.S. government stepped in to save AIG with a $85 billion taxpayer-funded loan, the company picked up a $440,000 tab for a week-long retreat at a posh California resort for top-performing insurance agents.
Lawmakers investigating AIG's meltdown said they were enraged that executives of AIG's main U.S. life insurance subsidiary spent a lavish amount on the retreat, complete with spa treatments, banquets and golf outings. Last week, White House Press Secretary Dana Perino called the event "despicable."
At that time, AIG issued a statement saying that the "business event" was planned months before the Sept. 16 bailout and that it was held for top-producing independent life insurance agents, not AIG employees. Of the 100 attendees, only 10 worked for the AIG unit hosting the event, it said.
The insurer said Chief Executive Edward Liddy sent a letter to Treasury Secretary Henry Paulson "clarifying the circumstances" of the event. In the letter, Liddy assured Paulson that AIG is "reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating."
The insurer then said it canceled a future California retreat that was to be held later this month.
Regarding the recent hunting trip, "We regret that this event was not canceled," Tulupman said Wednesday.
Shares of AIG fell 37 cents, or 13.2 percent, to $2.43 in trading Wednesday.
They should go to Jail for what they are doing, I own a small business and do work for a property they own. AIG has not payed me for for months about 200k. Then they canceled my contract and I feel for the contractor there going to stiff next its called global.
Can I ask them for a vacation or instead I wounder or may be our government will bail my company out.
They would fly in on there private helicopter you should see the waist of this company. I feel for the people they are reely putting it two and do not even think twice about it our government is run with the tax payers money we should demand it back with interest.
I agree with you. Had WE been the ones misusing hundreds of thousands of dollars, we would be charged with FELONY OFFENSES and WE would be in jail. What is the cutoff for stealing or squandering money and it becoming a felony? $500, and they misused hundreds of thousands of dollars! Absolutely, they should be jailed or imprisoned! And WE should be on vacation. And they and their reaping families should pay it back to US, the one's who bailed THEM out!
Now let's see...hmmmm...where did I put my guillotine?
spending more of your taxpayer's money...
they should be thrown in jail, right away..
In my neighborhood, homes have down devalued to $25,000. That's not how much they devalued BY, but what they are currently valued AT. By my figures, AIG has blown $526,000 on party time since they asked hard working, mostly underpaid and under-insured taxpayers for corporate welfare. I'll round figures here and over-value the homes in my nieghborhood (figure the excess value as going toward home repairs) Let's just call it $525,000 and value these homes at $40,000. That money blown by these corporate blood-sucking leeches in their solid gold ponds would have outright bought homes for 13 poverty-stricken families here.
Who'd like to puke first?
Disgusting.
One year the hospital I worked for (the one I quit in disgust) told all the employees that there would be no raises, not even a cost of living increase. Then the whole board and their families took vacations to Hawaii.
For $526,000, 21 workers could have been paid $25,000 for a year.
To a lot of people, sometimes me, "splurging" is buying a dress for $3 at a thrift store that I really don't need, or buying a magazine, or a candy bar. There was a time when "splurging" meant buying toothpaste or coffee.
The correct sound effect for puke: glggmmblekhackplunk ehh ghasp moan wheeze hack flush (repeat as necessary)
Now that sounds familiar.
At a nursing home in Fairfield, OH (if Scott Isaacs sees this, he'll know EXACTLY which facility and which owner) the ownership started building a multi-million dollar assisted living facility designed to cater to the wealthy on the back lot. Halfway through the building, he issued a wage and hiring freeze (ever heard of a nursing home with a hiring freeze?)
We'd go on our smoke break and point out where our raises were going. Then he went too far - he had the audacity to call a meeting to let us know his multi-million dollar project had nothing to do with our wages being frozen. I can take a lot of BS but being played for a stupid a$$ isn't in that category. I left to go with Hospice after the SOB insulted our intelligence.
I don't agree with the hunting trip if it is true; however this is irrisponsible journalism at best. It was verified by investigation two weeks ago on friday, and reported on national television that it was independant agents that went to the spa retreat in California. It was also verified that not a single AIG Exec attended this retreat, nor any other employees of AIG. Yet the media still continues to report they did. I guess if you want the controversy bad enough you just make it up.
Doesn't matter to me who went. What is important is who paid the bill for it. If the bill went to AIG (and I suspect it did) then we paid for it.
Somehow we are going to have to get back to being accountable for our actions. Corporate heads are able to disguise their unethical and illegal schemes using the same sort of compartmentalization in use by the bank where I work. If you don't need to know something, you get in serious trouble for asking questions. Who decides access to that information - the people at the top, of course.
We are going about this all wrong. Let them fall. Let the whole house of cards fall and you know what? I'll bet you and I survive. They may have enough stashed away to move to Dubai, but corporate criminals must not be allowed to rape and pillage their own companies and then come with hat in hand to us to bail them out.
We are getting just a glimpse of "Business As Usual" and it make me sick to my stomach. I posted an article called, This Just In...Greed Is Not Good. Kleptocrats* in Shock. Film at 11." More good ideas and information there.
*Kleptocrat: a noun describing an over-achiever who is convinced that he or she is superior to everyone else, deserves more than everyone else and is above the law. (See Royalty, Monarchy, George Bush, Kenneth Lay, Charles H. Keating, Jr., etc.)
Kleptocrat: a noun describing an over-achiever who is convinced that he or she is superior to everyone else, deserves more than everyone else and is above the law. (See Royalty, Monarchy, George Bush, Kenneth Lay, Charles H. Keating, Jr., etc.)
KBN, I have been in my thesaurus all day trying to find words to express what has, to me, become inexpressible. This one would fill at least one hole rather nicely.
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