AIG Fiddles…

By Alan Stewart Carl | Related entries in Corporate Business, Economy

In a stunning display of self absorption, executives at financial giant AIG spent $440,000 on a posh California retreat just days after accepting an $85 billion bailout loan from the federal government.

While the extravagant retreat did not include employees from the troubled financial services division, how on earth could these men and women partake in wining, dining and spa treatments when they know how much their company has cost taxpayers and investors? Even if you argue that this is exactly the time a distressed company needs to rally its employees, can’t you have a meeting at Holiday Inn and a happy hour at Chili’s?

Lawmakers are incensed. Barack Obama all but called for AIG heads to roll. And the rest of us are left with yet more proof that what caused this mess was not just a few bad mistakes but an entire culture of undue privilege and no accountability.

It’s going to take more than a flood of government money to wash away those problems.


This entry was posted on Wednesday, October 8th, 2008 and is filed under Corporate Business, Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “AIG Fiddles…”

  1. AIG Blog Relations Says:

    Earlier today, AIG announced an important policy change – one that we wanted to be sure you knew about.

    A short time ago, our Chairman and CEO Ed Liddy said that he has ordered the immediate cancellation of all outside meetings, conferences, and recognition events across AIG, except those that are required by law or that are deemed absolutely critical to sustain our ongoing business needs.

    Given AIG’s commitment to our customers, business partners, regulators, and American taxpayers, coupled with the new and very different challenges our company now faces, we take these responsibilities extremely seriously. Their trust is critical to our success. We recognize the need to be sensitive about all company expenditures.

    As we move forward, we will continue our focus our efforts to pay back the $85 billion loan from the Federal Reserve Bank of New York as quickly as possible.

  2. Dave Brunswick Says:

    For those that care about the truth, this is typical media garbage. I have no relationship with AIG but this is wrong. The so called junklet was a normal business practice of a sales program for independent (that means not employed by AIG) life insurance agents. This is normal practice in many industries such as inssurance, car dealers, etc. The program was over befoe the bailout and I believe AIG had a moral if not legal obligation to fulfill their commitment. I would suspect they had the liability accrued on their balance sheet. I would suggest you all get off of Mr Liddy’s back and try the truth for a change, something that is contrary to most media reporting. Of the approx 100 participants that attended, only 10 were AIG employees and they were not from the corporate headquarters.

Leave a Reply


NOTE TO COMMENTERS:


You must ALWAYS fill in the two word CAPTCHA below to submit a comment. And if this is your first time commenting on Donklephant, it will be held in a moderation queue for approval. Please don't resubmit the same comment a couple times. We'll get around to moderating it soon enough.


Also, sometimes even if you've commented before, it may still get placed in a moderation queue and/or sent to the spam folder. If it's just in moderation queue, it'll be published, but it may be deleted if it lands in the spam folder. My apologies if this happens but there are some keywords that push it into the spam folder.


One last note, we will not tolerate comments that disparage people based on age, sex, handicap, race, color, sexual orientation, national origin or ancestry. We reserve the right to delete these comments and ban the people who make them from ever commenting here again.


Thanks for understanding and have a pleasurable commenting experience.


Related Posts: