AIG - $86,000 Hunting Trip in England

[jtex316]

http://www.foxnews.com/story/0,2933,438681,00.html

CHARLOTTE, N.C. —  First there was the $440,000 American Insurance Group Inc. spent entertaining executives days after receiving an $85 billion lifeline from the Federal Reserve, now it's $86,000 for a hunting trip in England as the faltering company reaped another $37.8 billion in taxpayer funded loans.

News of the hunting trip emerged Wednesday as New York Attorney General Andrew Cuomo ordered AIG to do away with golden parachutes for executives, golf outings and parties while taking government money to stay afloat.

"Even after the taxpayer-funded bailout of AIG, the company paid hundreds of thousands of dollars for luxurious retreats for its executives, including an overseas hunting party and a golf outing," Cuomo wrote in a letter to the New York-based insurer.

He said the spending could be "fraudulent conveyances" under a state law regarding debtors and creditors and noted that beyond those excesses millions were paid to executives who were running AIG as it faced dissolution with government help.

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.

Company officials said the hunting trip in the English countryside was an annual event for customers that had been planned months before the bailout. The company pledged — as it did following the September trip — to do everything possible to end such extravagances. They declined to say which AIG executives attended.

"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."

The company said last week it would stop "all nonessential 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 the $85 billion taxpayer-funded loan, the company picked up a $440,000 tab for a weeklong retreat at the posh St. Regis Resort in California 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.

I DON'T GIVE ONE FUCK WHEN THIS SHIT WAS PLANNED ASSHOLES!!!! You pieces of crap CANNOT continue to spend our tax dollars in bullshit outings for fat old executives...I mean I simply CANNOT believe this shit. Someone HAS to do something about this - PLEASE!!! Can't the government intervene and fire everyone at AIG for this crap? Don't give me "this was planned months ago" or "we do this every year" bullshit - you were in trouble months ago as it was, you had no business spending now close to $600,000 in two vacations in the last month now.

Someone has got to put a stop to this bullshit. Here is my 401k plan going into the shit, and some rich pieces of shit are using funds from a company that is the backbone of our economy and going hunting and going to spa resorts. I am sick and tired of this type of bullshit, and heaven forbid if I find out that GWB or McCain is involved in any way, shape, or form with this.

[YoFuggedaboutit]

That's another reason why I'll be voting for Obama.  If he has his way, the execs will be let go, and the company will be paying that money back. 

[Phishfan]

If anyone has insurance with AIG, please go shopping around.

[Brian Fein]

We used to have outings like this when I was working for Motorola, and as soon as the COMPANY (not the sector, but the corporation) was doing bad, they stopped.  No more golf outings for the entire team.  No more Christmas parties.  No more lunches on Fridays.

AIG should take a lesson, especially since they're in the spotlight now.

[Phishfan]

My former company did the same thing. Our division was a profit maker, but they had issues in other areas. Guess whose perks got cut? Everyone's, that is just practical business.

[jtex316]

We used to have outings like this when I was working for Motorola, and as soon as the COMPANY (not the sector, but the corporation) was doing bad, they stopped.  No more golf outings for the entire team.  No more Christmas parties.  No more lunches on Fridays.

AIG should take a lesson, especially since they're in the spotlight now.

You see, this is what SHOULD happen, and Motorola isn't the backbone of our economy. Yes, when we are doing well again, you can go on golf and resort trips for your fat executives. But HOW IN THE HELL can you accept a $85 Billion loan, say it's not enough money, get another $35B or so on top of that, and then blow $600,000 on stupidity? I guarantee that A LOT MORE than that has been basically wasted, we just haven't found out about it.

Total 100% bullshit.

[run_to_win]

Personally, I hope every cent of the $850,000,000,000 is squandered like this.  I hope execs take it all and buy themselves mansions, yachts, planes and summer homes.

Perhaps then we'll stop "rewarding" these greedy dumbasses with our hard-earned money.