AIG After $85 billion Bailout = ?

[Suicide_Run]

For those whos in the US....this is pretty much gonna suck for you. In less than a week after the federal government used $85 Billion to bail out AIG, guess what the executives did?

 

They went a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California. That "retreat" cost $440,000 which can be split into nearly $200,000 for rooms, $150,000 for meals and $23,000 in spa charges.

 

Also, there are evidence that says the former CEO changed the bonus schedule in order to insure that top executives would continue making multi-million dollar salaries, even as their company went broke.

 

I wish I was getting a free trip to a resort paid by taxpayers, shame how I ain't an executive in any big companies.

 

Source: After Bailout, AIG Execs Head to California Resort

[Dav]

I am so happy that one of the conditions of the UK bail out is no stupid bonuses.

 

Only downside is noone has any cofedance in the government so it probably will not do a lot anyway.

[Hoch]

You do realise, of course, that this junket was probably planned

months in advance and certainly long before AIG had to go to the

federal government cap in hand. In addition, if AIG had cancelled

at the last minute then they would have lost whatever deposit was

paid towards the trip. Not to mention the resort that hosted this

event would have been out all that money, which translates to lose

profits and jobs.

 

Two sides to every story...

 

-Hoch

[Aceflyer]

You do realise, of course, that this junket was probably planned

months in advance and certainly long before AIG had to go to the

federal government cap in hand. In addition, if AIG had cancelled

at the last minute then they would have lost whatever deposit was

paid towards the trip. Not to mention the resort that hosted this

event would have been out all that money, which translates to lose

profits and jobs.

 

Two sides to every story...

 

-Hoch

 

What Hoch said. QFT.

Edited October 11, 2008 by Aceflyer

[CRe]

You do realise, of course, that this junket was probably planned

months in advance and certainly long before AIG had to go to the

federal government cap in hand. In addition, if AIG had cancelled

at the last minute then they would have lost whatever deposit was

paid towards the trip. Not to mention the resort that hosted this

event would have been out all that money, which translates to lose

profits and jobs.

 

Two sides to every story...

 

-Hoch

 

What Hoch said. QFT.

 

What does QFT mean? And yes I agree.

[Samapico]

http://en.wikipedia.org/wiki/QFT

 

Choose your meaning

[CRe]

http://en.wikipedia.org/wiki/QFT

 

Choose your meaning

 

I pick Quantum field theory because it sounds cool.

[»Lynx]

You do realise, of course, that this junket was probably planned

months in advance and certainly long before AIG had to go to the

federal government cap in hand. In addition, if AIG had cancelled

at the last minute then they would have lost whatever deposit was

paid towards the trip. Not to mention the resort that hosted this

event would have been out all that money, which translates to lose

profits and jobs.

 

Two sides to every story...

 

-Hoch

 

Firstly, I doubt that this trip has any deposit what-so-ever, but I'd bet that this trip was planned on the companies tab. However, if there were a deposit, it would only be on the rooms. The article states that the rooms cost $1000 a night, and stated that $200,000 was spent on rooms. So, thinking about how much a deposit typically is (Around 15-20%) - so at 20% a company that should be looking to find viable ways to spend it's money would save $352,000 (If the deposit was made on the whole service - which is unlikely), or, if it were only paying for the rooms it would have saved around $400,000.

 

Also, I hardly think that not fueling an extortionate resort would translate to losing jobs, but each to their own opinion I guess. However, saying all of this - and knowing how much my place of work spends on stupid little meals monthly, I doubt this little resort even made much of a dent on their budget sheets.

 

Also, on the UK not allowing any stupid bonuses for the execs, I wonder how long that will last. Will it only be for this time of crisis or will it only be until people stop scrutinizing the way these banks are spending stupidly.

 

-Lynx

[Suicide_Run]

Update:

After people start bombarding AIG with questions and what not, they answered by saying:

 

The event, mischaracterized as an "Executive Retreat," was held by one of AIG's insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve Bank of New York's loan to AIG.

So I guess its true they planned it months ahead before the government decided to give them money for the bailout. Basically, your tax money went from paying CEOs to a retreat to paying "bonuses" to agents.

 

Apparently....after saying that, they are going to have another party. But they decided to cancel that soon afterward.

 

... the giant AIG Insurance Company says it has called off plans to hold a second retreat next week at the exclusive Ritz-Carlton Resort in Half Moon Bay, California.

But here comes the kicker.....on that very same day they canceled their second "retreat". They asked the government for a $37.8 billion loan.

 

I guess they are gonna use that extra $37.8 billion for a better party....maybe thats why they canceled the old one.

 

Source:

AIG CLARIFIES AGENT MEETING

Outrage Leads AIG To Cancel Second Luxury Retreat