AIG hosts seminar while seeking additional Fed aid

Tue Nov 11, 2008 12:58 PM EST
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CHARLOTTE — American International Group Inc. on Tuesday defended itself against a media report of a sales meeting held at a luxury resort in Phoenix last week, saying the event was an "essential training meeting."

ABC News reported details of the event late Monday, the same day the U.S. government announced a restructuring of a bailout plan for the insurer, boosting aid to the company to around $150 billion — even after the company said months ago it would stop "all nonessential conferences, meetings and activities that do not clearly maximize value and service given the current conditions."

"We reviewed this one. This one did not slip by," AIG spokesman Nick Ashooh said Tuesday. "Some of the things we've done in the past certainly can be criticized, but this was a totally legitimate event that wasn't even for AIG employees."

Company officials said the meeting, held at the Pointe Hilton Squaw Peak Resort, was a sales training and education conference for about 150 independent financial advisers in its AIG Advisers Group.

"It is essential for AIG to conduct seminars of this kind to keep independent financial planners abreast of investment products and services including those offered by AIG," AIG Chief Executive Edward Liddy said in a statement.

While some AIG employees were present, the cost was "minimal" to AIG, with more than 90 percent of the event paid for by attendees or by sponsors, Ashooh said.

"It's the way we do business. We have to hold these events," he said. "You have to hold them somewhere."

Financial planners were responsible for generating almost $200 million in revenue this year for AIG as of Sept. 30, the company said.

In recent months, AIG has come under fire for picking up a $440,000 tab for a weeklong retreat at the posh St. Regis Resort in California for top-performing insurance agents, just days after the U.S. government stepped in to save the company with a $85 billion taxpayer-funded loan. AIG also spent $86,000 for a hunting trip in England as the faltering company reaped another $37.8 billion in taxpayer funded loans.

Lawmakers investigating AIG's meltdown said they were enraged that executives of AIG's main U.S. life insurance subsidiary spent $440,000 on the retreat, complete with spa treatments, banquets and golf outings.

Company officials said the activities had been planned months before the bailout. On Oct. 10, the company pledged to do everything possible to end such extravagances and has since agreed to freeze millions of dollars in compensation and bonuses for former executives.

The most recent event held in Phoenix, came as the government announced new financial assistance to AIG, including pouring $40 billion into the company in return for partial ownership.

Liddy said the company conducted a "top-to-bottom review of all expenses of the Phoenix meeting in advance and found that it was consistent with my Oct. 10 directive."

The company has canceled more than 160 events, since, AIG officials said.

"This conference was approved because it provides the kind of communication we must conduct with the people who sell our products if we are to be successful and repay the U.S. taxpayer," Liddy said.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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{"commentId":4019150,"authorDomain":"pteasley"}
PET 1

What we are seeing is the main stream media trying to twist the news to build a wall aganst any business who has taken money from the Feds. They have no understanding of buisness. Regardless of wether a company takes money or not, they still must run the business. That means, conferneces.

I'll bet if we looked into why the cost is so high, will find union jobs that pay outlandish wages. So, who are we going to start blaming. Unions.... or businesses. Unions don't create a tax base and buisness does. What we are know seeing is the first foundation of socializm. It won't stop here. Next it will be anyone making more that $200,000 is rich... then it will be $150,000.... then it's going to be $100,000 and so on.

If we really want to look at our problems in the war... wall street and business... it always boils down to reporters printing false stories. Oh I beleive there are some honest and non-bias reporters, but very little.

What scares me is, we are allowing this to happen. Today is veterans day, the day that our freedom was faught for. Know, we are in the brink of losing that freedom. It all starts with these little articles that is trying to make business or people of make any money... bad people.

{"commentId":4019150,"threadId":"416140","contentId":"2100594","authorDomain":"pteasley"}
    Reply#1 - Tue Nov 11, 2008 2:17 PM EST
    {"commentId":4027487,"authorDomain":"carla126"}
    Carla-316396

    Insert name of just about any banker here, added to the likes of Lehman Bros, AIG, GM... Shenanigans by their execs have jeopardized our entire economic system--our "homeland", and subsequently, our "security" as a nation.  Shouldn't they at least be tried for posing a threat to "homeland security"?

    Ken Lay (Enron), Dennis Kozlowski (Tyco), Bernie Ebbers (Worldcom), Rigas (Adelphia)... What ever happened to the good ol' days? And Lord knows, what ever happened to the Sarbanes-Oxley Act of 2002.  Short-term memory? Sarbox was enacted in response to a number of major corporate and accounting scandals (aforementioned); scandals which cost investors billions of dollars when the share prices of the affected companies collapsed, shook public confidence in the nation's securities markets.

    And even better this time around, now that they're being aided and abetted by politicians. Crooks!!!

    {"commentId":4027487,"threadId":"416140","contentId":"2100594","authorDomain":"carla126"}
      Reply#2 - Wed Nov 12, 2008 12:53 AM EST
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