The world's largest insurance company and sponsors of Manchester United, AIG, spent $440,000 on a lavish corporate retreat at one of California's top beachside resorts a few days after accepting an $85bn emergency loan from the US government to stave off bankruptcy.Am I over reacting here or is that a bit rude and inconsiderate ? I can tell you that if I was a tax payer in the USA I would be a little bit upset to say the least ! At the end of the day, it is the fault of these wannabe playboy wankers oooops bankers with their high living partying lifestyle earned by gambling with the money of others, that this whole world wide credit crunch is wreaking havoc world wide. So what do they do ? They hold a party !
Details of the week-long getaway enraged legislators at a congressional hearing yesterday where AIG's former bosses were accused of spending taxpayers' money on pedicures, golf games and cocktails. Crippled by losses on financial insurance companies, AIG was bailed out by US taxpayers on September 17th to avert a collapse which risked causing further failures.
The House oversight committee, which is investigating the company's problems, confronted AIG executives with an invoice from the St Regis resort in Monarch Beach, south of Los Angeles, detailing an eight-day company event which began five days after the rescue.
"Average Americans are suffering economically," said Henry Waxman, chairman of the committee. "They are losing their jobs, their homes and their health insurance. Yet less than one week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation."
The bill shows that AIG spent $139,375 on rooms, $147,301 on "banquets", $23,380 on spa treatments and $6,939 on golf at an eight-day company event which began on September 22.
"US taxpayers will be, in effect, paying for this," said Elijah Cummings, another Democrat, who demanded to know who was responsible for the outlay. "I think that person ought to be fired."
Rooms at the resort start from $500 a night and the travel guide Fodor's gives the place a rave review, saying: "Exclusivity and indulgence carry the day here; you can even have someone unpack for you."
Apparently though, according to AIG it is OK, it was to entertain freelance insurance salesmen who sold life, health and accident policies for the group's US subsidiary. Incredible !
AIG's former CEO who got the boot after AIG got into trouble amused me too saying it "seems very inappropriate. If I had been aware of it, I would have prevented it from happening," he added. How very gallant of you Mr Willumstad. It's just a shame you feel able to react in a timely manner to stop a party but you were unable to spot a world financial crisis which crept up on you and kicked your ass out the door Mr !!
1 comment:
They must have a brilliant marketing team. I hear for Thanksgiving they are planning an event where they burn wads of cash in front of a homeless shelter.
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