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AIG Gets More Government Bailout Cash

Only one day after it was revealed that AIG had sprung for a $440,000 spa vacation shortly after getting an $84 billion government-loan bailout comes this report: The government is loaning AIG another $38 billion.

AIG, the world's largest insurer, said it has already drawn down $61 billion on its $84 billion line of credit from the government. AIG's financial products division got into the mortgage-backed securities market and incurred billions in losses, sending the entire company teetering toward bankruptcy. The $84 billion loan was meant to help prop up AIG.

The New York branch of the Fed Reserve will borrow $37.8 billion in investment-grade securities from AIG in exchange for the cash.

During a hearing before the House Oversight committee on Tuesday, it was revealed that just last week, about 70 of the company's top performers were rewarded with a week-long stay at the luxury St. Regis Resort in Monarch Beach, Calif., where they ran up a tab of $440,000, The Post's Peter Whoriskey reported today.

Oversight committee Henry Waxman (D-Calif.) showed a photograph of the resort, which overlooks the Pacific Ocean, and reported expenses for AIG personnel including $200,000 for rooms, $150,000 for meals and $23,000 for the spa, Whoriskey wrote.

Today, AIG chief executive Edward Liddy defended the vacation by pouring gasoline on the fire.

Such trips "are standard practice in our industry," Liddy said, no doubt thrilling every other major insurance company.

In a letter to Treasury Secretary Hank Paulson, obtained by ABC News, Liddy said the vacationers were largely independent insurance agents who had sold well for AIG.

"Let me assure you that we are re-evaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating," Liddy wrote. "We understand that our company is now facing very different challenges -- and that we owe our employees and the American public new standards and approaches."

-- Frank Ahrens

By Frank Ahrens  |  October 8, 2008; 6:34 PM ET
Categories:  The Ticker  
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Comments

What a bunch of weasles. This is precisley why the bail out plan was flawed. It rewarded failure and practices like this.

The government should have simply bought shares of the company and taken over the board and start to clean house.

Posted by: Anonymous | October 8, 1908 6:43 PM | Report abuse

So much for the lawmakers being upset about AIG 440,000 party at tax pauor expense. The Lawmakers are so upset tht a day, ONE DAY, after the hearings our beloved goverment gives them another 36 BILLION. That will show AIG that the tax payor has had enough. You Betcha. Why don't the just empty the treasury and put us out of our misery

Posted by: Robert | October 8, 1908 6:43 PM | Report abuse

Their complaints are fueled by nothing but envy.

Posted by: Gary E. Masters | October 8, 1908 6:48 PM | Report abuse

The systematic financial destruction of the American people continues unabated..I'd hate to have kids and mortgages in the coming years, the propped up economy will drop like a rock after the elections, just watch..

Posted by: frak | October 8, 1908 6:50 PM | Report abuse

Are you serious? Really? 'Such trips "are standard practice in our industry,"'

We bailed them out so they can vacation? I don't really care if they are the company's top performers...obviously they didn't perform well enough if the company needed us to bail them out.

This is B.S.!

Posted by: Andrew | October 8, 1908 6:55 PM | Report abuse

we can't give the American people that can't find jobs another unemployment extension but we can give more to AIG
God Bless America and Jo Six Pack

Posted by: bb | October 8, 1908 6:55 PM | Report abuse

I for one am not angry about the financial trouble we are in, so much as I am about the fact that I know that government would do nothing to hold anybody accountable... which is exactly what happened in AIG's case I see. Now the financial and political elite wonder why we hard-working Americans are so pissed about bailing these criminals out with our hard earned money.

Hey Mr. Paulson, can I get a 400k luxury trip? I fight to survive law school with 100k in debt, while trying to find a job and take care of my indigent, sick mother too. I guess I won't because me going broke won't cripple the economy.

Posted by: Anonymous | October 8, 1908 6:55 PM | Report abuse

Standard practice huh? Like in ripping off taxpayers like they used to rip off shareholders. Take the $440,000 out of the CEO's compensation and see how long these grand thefts remain "standard practice for the industry."

Posted by: Dave P | October 8, 1908 6:56 PM | Report abuse

All we needed to know about punishing bad behavior--AIG is too big to punish. Ah, if Thomas Nast was alive.................his cartoons about the Tweed Gang could be published today. Look up the one on "Justice, Wholesale and Retail."

Posted by: rusty 3 | October 8, 1908 6:56 PM | Report abuse

Apparently AIG feels no punitive actions are likely, despite taxpayer outrage. What an arrogant, out-of-touch group.

Posted by: cmarie | October 8, 1908 6:57 PM | Report abuse

Not to defend any one involved but they got money from different places. Congress gave them the $81 bil and the Fed gave them $37 bil

Posted by: 13th St S.E. | October 8, 1908 6:57 PM | Report abuse

Who is paying for the "reteat" in a luxury hotel that cost over $400,000?

Posted by: Nelson | October 8, 1908 6:57 PM | Report abuse

Where is our important leader in chief? The weasely little pathetic do nothing. Come on bush get a back bone - this is too sickening even for you to not find a sutiable punishment for. These people need to be punished and the moneies refunded and take back this last bail out to boot . Let them fail - no one is too big to fail - no one!

Posted by: Janet | October 8, 1908 6:58 PM | Report abuse

now is the time americans


IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --

That whenever any Form of Government becomes destructive of these ends

(it is the Right of the People)

to alter or to abolish it, and to institute new Government,

laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.--Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.
He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.
He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.
He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for the sole purpose of fatiguing them into compliance with his measures.
He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.
He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.
He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.
He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers.
He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries.
He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.
He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.
He has affected to render the Military independent of and superior to the Civil power.
He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:
For Quartering large bodies of armed troops among us:
For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:
For cutting off our Trade with all parts of the world:
For imposing Taxes on us without our Consent:
For depriving us in many cases, of the benefits of Trial by Jury:
For transporting us beyond Seas to be tried for pretended offences
For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies:
For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments:
For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.
He has abdicated Government here, by declaring us out of his Protection and waging War against us.
He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people.
He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.
He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.
He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

Posted by: david,veteran | October 8, 1908 6:59 PM | Report abuse

How much are those over compensated weasels who ran AIG into the ground kicking in to clean up the mess they made? Nothin?

Posted by: BlueTwo1 | October 8, 1908 7:00 PM | Report abuse

david.veteran is right on. The words given to us by Thomas Jefferson roing true in 2008.

Posted by: john | October 8, 1908 7:05 PM | Report abuse

Is AIG going to return the more than $450,000.00 they spent for a party in Los Angeles after the first bailout? We as a nation have been criticizing Blacks, Hispanics, and low income Whites for years about welfare. What these people got was chump change compared to AIG. We know know America is about helping in a big way those who already have.

Posted by: truth1 | October 8, 1908 7:07 PM | Report abuse

This is ridiculous. Not one more taxpayer cent to any company with its hand out, until the CEO is sent packing with NOTHING. No golden parachute, no severance package, and withhold the last paycheck on the way out, too. I'm sure they can survive by selling one or two of their mansions or Learjets.

Posted by: Lila | October 8, 1908 7:19 PM | Report abuse

I was at the party

Posted by: Sancho | October 8, 1908 7:19 PM | Report abuse

Read Kevin Philips and cry

Posted by: Peter | October 8, 1908 7:19 PM | Report abuse

It's all over in 25 days you elite Republican snobs.

Posted by: Pat | October 8, 1908 7:20 PM | Report abuse

seriously?


we need a revolution in this country

Posted by: rick | October 8, 1908 7:20 PM | Report abuse

I wanted to put in my bid for vacation funds. I know I haven't really lost any money, and I'm really quite responsible with my debt, but I own a small company, and since Congress is handing out money to the irresponsible and criminal, how about I run up my American Express card to it's $100,000 limit.

I promise I will go on vacation at an overpriced resort. No Days Inn for me ... no I'll even do better than the AIG executives: I'll shoot for the President's suite at $5,000 per night.

Ok ... I know I need to have my grubby hands in to more than just my company debt so Lets just bail out my home mortgage that I used as an ATM to fund my extravagances.

WAKE UP AMERICA!

Dominick A. Leone
A voice of reason and true conservativism

Posted by: Dominick Leone | October 8, 1908 7:20 PM | Report abuse

First, no tax deduction for the expense of this trip. Second, deduct this cost from any money given to them in the bail out. Third, charge the individuals who went on this trip knowing the financial problems with the company. Just add it to their income tax payment.

Posted by: steve jacobson | October 8, 1908 7:21 PM | Report abuse

Hmmm...looks like Sarah Palin has been shooting the wrong wolves.

Posted by: Bob22003 | October 8, 1908 7:24 PM | Report abuse

I am sure they will be happy to return the money, just as soon as the Fed gives them additional money to cover the repayment.

Posted by: Kit | October 8, 1908 7:24 PM | Report abuse

The Very People Responsible For Setting The Fire That Is Rapidly Burning Our Economy To The Ground Are Going Free.

They Are Being Helped By Henry Waxman Who Is Putting Up An Effective Smoke Screen To Shield The Guilty Parties.

You Have Jamie Goerlick, Franklin Raines, Daniel Mudd and Jim Johnson at the heart of the meltdown.

They Were Aided By Chris Dodd, Barney Frank, Chuck Schummer, Henry Waxman, Maxine Waters, Artur Davis, Harry Reid, Lacy Clay, Gregory Meeks, and Nancy Pelosi.

http://www.youtube.com/watch?v=_MGT_cSi7Rs

These people owe the American People an explanation, an apology, and at the very least some jail time.

Don't take your eye off of the ball. These are the people who lit the match. Jamie Goerlick is set to be our next attorney General.

We simply CAN'T let this happen or the crooks will all go free.

http://www.wnd.com/index.php?pageId=67068

Posted by: GeraldD | October 8, 1908 7:27 PM | Report abuse

This is one time I wish I had been wrong. At the beginning of this whole financial bailout plan from Paulson/Bush, I argued with my fellow workers that we should not bail Wall Street out of this mess. They thought I was crazy...after all the sky was falling!!!

As a parent and teacher, I'm mortified and embarrassed for our legislators. Here at a time of crisis, they should be leading us with the same principles I try to instill in my children as well as my students, of upstanding moral convictions. But what are they doing...they're running around like a bunch of chickens with their heads cut off.

Where is the accountability? Where is the remorse? WHAT THE F__K ARE THEY DOING???

Instead of giving billions and billions of dollars to the same crooks over and over again...why don't they give each United States citizen $1 million? It would only cost around $350 million. Just think what that would do? Us 95% of Americans, that Obama has continually said he would not have their taxes raised, would be able to payoff their mortgages, school loans, afford health insurance, etc. Not to mention the spending spree that would occur...Gosh!...What a concept.

Let the AIG boat sink! It's time we start sending those emails and making those phone calls again to our representatives, reminding them that we have the power...the power to vote them out of office!

Posted by: Pam | October 8, 1908 7:28 PM | Report abuse

Well I am quite glad I have to search at the bottem of my purse just to buy bread... I for one hope they enjoied every moment of thier massages... I am sure they have more stress in thier lives than what i am worried about... LIKE FEEDING MY CHILDREN!

Posted by: trying to survive | October 8, 1908 7:29 PM | Report abuse

You will see more market revolt. They are taking it too far and it's going to go to the point where things just collapse beyond their control or beyond being bailed out. They think they have all of this control, when in reality things only go to a certain point and break. I believe we are near the breaking point. Find shelter and go private. We are just at the start of this. We have local towns going broke that need public funding.

Posted by: Anonymous | October 8, 1908 7:31 PM | Report abuse

Maybe they need the money for another weekend party.

Posted by: John | October 8, 1908 7:32 PM | Report abuse

So, let me get this straight-- the AIG have people who report to it or work for it who are, uh, "top performers?" In what league do they play? Get the subpoenas ready. America. Its time for war.

Posted by: J. Martin Smith | October 8, 1908 7:32 PM | Report abuse

What a Non-surprise! Sounds like the BUSHIES are building job-security for after when they get booted out of the White House. These arrogant bozos at AIG need a lesson in economics that teaches that you don't spend what you don't have. It's hard to break bad habits after 8 years of wreckless government.

George B continues to build his legacy as the dumbest President in US history

Posted by: Johann Wagener | October 8, 1908 7:33 PM | Report abuse

Convict the principals and send them here. We have Enron felons who'd love to show them around the prison........

Posted by: Patty in Houston | October 8, 1908 7:33 PM | Report abuse

The fundamental lesson here is... we don't need any more government's regulations. All these government input only cause us to go deeper into a hole-- look at F. Mae and F. Mac. Politians don't even understand economics 101, we need to deregulate the free market and allow all those B**S*** companies to go down because they can't run a business. Stop making the regular tax paying citizens be slaves to the rich and the poor.

Posted by: loo | October 8, 1908 7:33 PM | Report abuse

This bailout B.S. is a hoax raped in a deception.

Posted by: Old Coot | October 8, 1908 7:34 PM | Report abuse

I love the people who blame Republicans when the congress is run by Democrats. The republican president cannot pass laws only sign them. So who is to blame. . .

The criminals of these companies should be held responsible for their actions. The blame should not be put on people that could not and still do not control these companies actions.

Posted by: Sense of Reason | October 8, 1908 7:35 PM | Report abuse

It's not bad enough that mismanagement has made it a necessity to be bailed out in the first place, but, now the 84m isn't enough? Now they want another 38m? After we find out about their "standard industry practices"!

Lehman fell and the world is still spinning! Let AIG fail too! Nobody's bailing joe six-pack out.

Posted by: lks | October 8, 1908 7:35 PM | Report abuse

If you think this is fun, wait until losses on their credit default swaps start to mushroom.

Posted by: tiggerman | October 8, 1908 7:36 PM | Report abuse

Hey, these are probably incentives for all those top sales people that sold policies for these jerks.

This should be taken from the pay of the top
executives like someone said.. as those executives are FIRED.

And then they get another 37 Billion.

As a taxpayer... we might as well bend over and kiss or as-.. good bye.. because the democrats will cripple us so much under OBAMA that we will not be able to bend over. I bet by the time he is in six months... we will not be able to bend over OR walk because of all the debt.

Posted by: MILLER51550 | October 8, 1908 7:37 PM | Report abuse

AIG must have a lot of fraud in the closet.
Time for the feds to clean house.

Posted by: hhkeller | October 8, 1908 7:38 PM | Report abuse

Great! More money to send @ the spa.

Posted by: AIG Guy | October 8, 1908 7:39 PM | Report abuse

Wake up taxpayer.

Posted by: Mike | October 8, 1908 7:41 PM | Report abuse

Par for the course they get to live it up spending bigtime money out of our pockets. makes me wanna grab my gun and revolt

Posted by: rhanson | October 8, 1908 7:41 PM | Report abuse

While we are struggling to pay for our homes & gas to get back & forth to work, these %&*(^$#( are getting special treatment at some ritzy resort. I think they should have to pay this money back and then go to jail. Usually, people that do this are dressed in jumpsuits and belong to the county!!!

Posted by: barb | October 8, 1908 7:42 PM | Report abuse

How much for the girls AIG Execs?

If you are throwing a $400,000 bash at a exclusive California resort you of course are going to need some Spitzer style girls.

Posted by: Jacqueline | October 8, 1908 7:42 PM | Report abuse

Business as usual. Americans need to recall all of Washington. AIG is laughing their asses off at us stupid tax payers.

Posted by: SuckItTrebek | October 8, 1908 7:43 PM | Report abuse

Seriously, what the hell is going on?

Posted by: BR | October 8, 1908 7:43 PM | Report abuse

Where is regulators on this?Anyone should know that dirty executives after cheating the people of America in dirty sneaky ways and doing this to the economy and having tax payers bail them out that you shouldn't just had them a blank check and expect them to do the right thing!!! Didn't we learn anything about handing out blank checks to people up to no good,(REMEMBER BUSH & CHENEY)

Posted by: Gail | October 8, 1908 7:43 PM | Report abuse

THIS IS EXACTLY WHAT WE ALL KNEW WHAT WOULD HAPPEN. AIG IS JUST THE FIRST OF A LONG LINE OF COMPANIES THAT WILL MISS USE,STEAL,AND USE AS BRIBES. I WONDER HOW MUCH EACH OF OUR WONDERFUL PUBLIC SERVANTS ARE GETTING FROM ALL THESE COMPANIES, YOU KNOW ALL OF THEM WILL EITHER TAKE A SLOT ON THEIR BOARDS OR A CEO POSITION EITHER THEMSELVES OR FAMILY MEMBERS. IT SHOULD BE A LAW THAT ONCE YOU ARE IN GOVERMENT THAT YOU CANNOT TAKE A JOB OR MONEY OF ANY KIND FOREVER. AND NOT YOUR FAMILY EITHER. HOW CAN YOU TRUST THESE THIEVES??? ALL THEY DO IS LIE CHEAT AND STEAL FROM US, OUR FAMILIES, AND FRIENDS. I WOULD LOVE TO SEE A REAL CHANGE IN HOW WE ELECT OUR OFFICIALS. HOW ABOUT YOU START IN THE CITIES, GO UP A RUNG TO COUNTY,AND THEN STATE,THEN 1 TERM FEDERAL.AND THEN THEY GO HOME,NO LOBBIES,NO TAKING JOBS FROM ANYONE YOU PASSED A LAW OR DID FAVORS FOR. WE HAVE TO DO SOMETHING THIS SURE CANNOT GO ON.

Posted by: CAROL1747 | October 8, 1908 7:43 PM | Report abuse

Pam, please check your math.

I believe $1 million to every citizen would be around $350 TRILLION.

With that said, I am sure the irresponsible people who started this mess by not paying their mortgages and buying houses they cant afford would find someway to do it again, even with $1 million.

Personal accountability.

Nothing is free in this country.

Lets face it, the real problem here is with the people who took out mortgages they could not afford.

Maybe those people who stopped paying their mortgage should be responsible for paying back these bailouts and the rest of us who didnt take out something we couldnt afford can get off the hook.

Any takers on that boat?

ITS CALLED CAPITALISM.

Something we apparently have gave upon.

To all of you who are in foreclosure, walked away from your house, in over your head in debt.... please understand that you are the driving force in this mess.

All the financial sector did was TRUST THE PEOPLE PAY THEIR DEBTS. WHAT A CONCEPT!!

Posted by: teacher_2 | October 8, 1908 7:44 PM | Report abuse

Hey Patty in Houston ... I live in H town as well. Actually worked right across the street from the Federal Bldg where Lay and Skilling got convicted. The sense of calm and justice overwhelmed downtown on the days they were found guilty.

GET THIS!

FOUND SEVERAL VERIFIED STORIES THAT KENNETH LAY IS ACTUALLY ALIVE (RUMORED PLASTIC SURGERY) AND LIVING AT GEORGE W BUSH'S PROPERTY IN PARAGUAY!

These people are extreme criminals ... Paulson leads the pack now ... Only one thing would make world markets actually rise ... many severed heads dripping blood on top of the fence around 1600 Pennsylvania Avenue.

Posted by: Brian | October 8, 1908 7:44 PM | Report abuse

THIS COUNTRY IS SO F'D UP, I WISH I HAD SOME PLACE ELSE TO LIVE.................

Posted by: Thom perlmutter | October 8, 1908 7:44 PM | Report abuse

Read the letter:

The event in question was held by one of AIG’s insurance subsidiaries for independent life
insurance agents – not for AIG employees – who were top business producers for the company.
The vast majority of the attendees were independent business people and their guests, not AIG
employees. Indeed, of the more than 100 attendees, only 10 were employees of one of our
insurance subsidiaries who attended to represent their company. Not a single corporate executive
from AIG headquarters attended.

Posted by: fact finder | October 8, 1908 7:45 PM | Report abuse

Standard practice?! in a standard failure?
It was standard before, but not today. Other people are struggling on the foods!

Posted by: AIG, you should die | October 8, 1908 7:45 PM | Report abuse

I sold insurance for a large company (which I still work for, just in a different department)and although I was a top performer, I never got sent on such a vacation; neither did the management. Hmmm....I guess that is why our company is still in business without any help from a bailout. It's disgusting how ethics have gone to Hell in a handbasket with some of these formerly well-respected corporations. I am very lucky to work for an entity that values both its customers and employees. That $400,000 should have gone to AIG's clients who have suffered due to its bad business practices. Note to AIG-if you can afford these vacations, you do not need the bailout. GIVE THE MONEY BACK!!! What you have done is akin to food-stamp fraud...

Posted by: ghostygirl | October 8, 1908 7:46 PM | Report abuse

Are these "producers" selling policies that have heavy loads to consumers? Or ones that have no loads, hidden or otherwise? Do customers understand the loads? Could customers pass a written test that explained how the sales compensation works, the level of loads, and whether these policies are fair compared to a no load mutual fund in a stock index?

The government as owner of insurance companies has no interest in selling policies that have high loads and giving the money to the sales person. Maybe the government should keep these companies and eliminate loads and high sales commission and these parties and sell insurance policies with no loads or frills, just plain insurance at rock bottom cost. Do it in every state and let everyone know it.

Posted by: Old Atlantic | October 8, 1908 7:46 PM | Report abuse

Nobody is more crookeder than me and my company AIG!

Posted by: Edward L | October 8, 1908 7:49 PM | Report abuse

Just because we can party and you guys can't does not mean we don't appreciate it.

Best Wishes,
The AIG Family

PS Cant wait for the Christmas Party

Posted by: AIG | October 8, 1908 7:49 PM | Report abuse

where do i go to give the last of my savings to help that poor misjudged company, aig?

Posted by: herbert-de-turbot | October 8, 1908 7:50 PM | Report abuse

Vote OUT ALL incumbents.
This handout for Wall Street is just too much.
9 out of 10 Americans opposed this handout and Congress ignored us in favor of their big cash donors.
Enough is enough.

Posted by: DWayne | October 8, 1908 7:50 PM | Report abuse

This is why the American people do not trust government. Where is the governance? Who is monitoring what these companies are doing? There should be NO rewards for anybody! Without the bailout they wouldn’t have jobs, so the reward was the bailout. Issues like this are why the “wealthy” think they deserve everything even if they didn’t do a good job!!!

Posted by: Anonymous | October 8, 1908 7:50 PM | Report abuse

Pam! A teacher who cannot multiply, Yikes.

350 million...try again (clue trillions) J.

Posted by: john | October 8, 1908 7:50 PM | Report abuse

Revoke the bail out plan. Make them fix their own problems.
American companies are heartless SOB's!!!

Posted by: Nowell | October 8, 1908 7:50 PM | Report abuse

There is absolutely NO excuse for this type of irresponsible behavior!!! Here, the economy is taking a dump and these richard-heads are going to a 'spa' which is standard practice?? What the heck is THAT about?? Buying MILK for my 2 children is STANDARD PRACTICE but tell me why the heck I can't do that without ASSISTANCE!!! I don't care who these jerks think they are! I don't care if they 'used to be poor' the point is, they may have worked hard throughout their lives to get where they are---so what?? Millions of American's do the EXACT same thing and get NOWHERE!!! They are stupid, irresponsible scumbags who don't deserve their positions. They obviously can't handle the responsibility. They could have handled their business in a conference room just like the rest of Corporate America instead of at a freaking SPA! The government needs to take all that money back and just distribute it amongst the AIG investors. If I belonged to AIG, I would have already withdrawn my policies! Way to watch out for fellow Americans, jerks!

(and, NO, this is FAAAAR from ENVY as some may seem to see it. This is exactly what the government needs to say to those executives at AIG!!)

Posted by: Lisa | October 8, 1908 7:51 PM | Report abuse

Are you serious? Really? 'Such trips "are standard practice in our industry,"'
----------
I honestly think they're suffering from a type of SEVERE post traumatic stress disorder, who knows what is really happening in the subconscious of those clueless, self styled elite?

Kinda reminds me of the bourgeois as the rest of pre revolutionary France was preparing to murder them, doesn't it?

Glad it's not me, and glad we're not living in prerevolutionary France.

All that money, all that corruption, and absolutely NO SENSE OF CONTROL, at all, for those currently trying to squeeze blood out of a turnip, via the US Treasury.

Posted by: KOO-MO BEAN | October 8, 1908 7:52 PM | Report abuse

The vacation for these insurance agent's were warranted since there were many of them and they are the top sales people for the company. These people had nothing to do with AIG needing to be bailed out. They were not the ones investing in bad mortgages and securities and forcing the company to be overleveraged. They were the ones bringing in the money. Any good business person knows that you need to treat your top sales earners the best.

Also, this vacation was probably planned last year. It was not like they received the bailout and decided to take a vacation because of it.

Posted by: Think | October 8, 1908 7:52 PM | Report abuse

Teach 2 is right on.

john

Posted by: John | October 8, 1908 7:53 PM | Report abuse

Wow, Pam. I was pretty sure there were more than 350 Americans, but if giving everyone a million dollars would only cost us $350 million, we're a much smaller country than I thought. Actually, I thought there were more people in Congress than that, even.

A million dollars for every American would be about $300 TRILLION.

You should write spam.

Posted by: UncleSim | October 8, 1908 7:53 PM | Report abuse

Will somebody in our Government let AIG die. This company is corrupt and should be allowed to fail. If nothing else NO MORE MONEY should be lent these scumballs!

Posted by: dre7861 | October 8, 1908 7:53 PM | Report abuse

Should have saved Lehman and let AIG fall...

Crap!

Posted by: cb | October 8, 1908 7:53 PM | Report abuse

The comments to this article reflect the dumbing down which is so prevalent in our society. First there was no "bail out" of AIG.
It was a bridge loan. The interest rate AIG has to pay is steep. 8.50% over three month LIBOR. The arrangement fee that AIG had to pay the government immediately was $1.85 billion.
AIG got the loan because they are a good risk. They have over a trillion dollars in assets. This trip was attended by independent insurance agents that write business for a variety of companies. Only ten AIG employees were in attendance and the trip was planned in 2007. The government is going to make ALOT of money off of this loan. Lehman did not get a government loan because they were a bad risk. They had no assets. The CEO at Lehman made $440 million while the past CEO of AIG turned down his $20 million golden parachute because it was the right thing to do. People really should think twice before commenting on a subject they know nothing about.

Posted by: Andrew Roche | October 8, 1908 7:54 PM | Report abuse

Will somebody in our Government let AIG die. This company is corrupt and should be allowed to fail. If nothing else NO MORE MONEY should be lent these scumballs!

Posted by: dre7861 | October 8, 1908 7:55 PM | Report abuse

Well, at least these weasels spent the money in the US so someone still get jobs and paycheck. Until we throw them all out, don't be too hard on them or they will go party in Europe or somewhere no one know. BTW, don't we, the people owned 80% of AIG share now; Sec Paulson should fire the board and the Executive staff. They do not deserve to have jobs.

Posted by: James Nguyen | October 8, 1908 7:56 PM | Report abuse

It appears that nothing will change, just get worse. The crisis already affects the rest of the world markets and our elected officials have poured more money on AIG. When will the FBI finish investigating AIG? Lets hope it dosen't take as long as Enron did. When all is said and done we will have a new administration lead around by the leash of the corporations and lobbyists and a congress that will be 90 percent the same as it is now. Let's not forget that Clinton balanced the budget and in no time at all this administration plunged this country into deep, long term debt. Remember that this war was supposed to pay for itself....
I still think that the oil producers have us right where they want us. This is the effect that the terrorists wanted after 9/11. PLEASE get out there and vote for the people that will get us out of this hole.

Posted by: Bankrupt | October 8, 1908 7:56 PM | Report abuse

Since when does 350 million times one million equal 350 million. AND YOU'RE A TEACHER!!! That's the joke!

Or maybe I'm wrong and onlyh 350 people populate the U.S.

Posted by: michael | October 8, 1908 7:56 PM | Report abuse

Where are the monies coming from to bail out AIG? Is it, per chance, coming out of our Social Security funds? I think that our government needs to make sure there is a definitive repayment plan with these losers. I am certainly not envious of what I consider corruption. If you want a vacation, pay for it on your own time and with your extremely large salaries.

Posted by: Connie | October 8, 1908 7:57 PM | Report abuse

These people had nothing to do with AIG needing to be bailed out.
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Yeah, nice man on TV was explaining how he lost 100, 000 in the Indy Bank failure.

He had nothing to do with the sub Prime mortgage crisis, he had to take his financial hit, because of someone's elses actions.

Can you see the bigger picture, yet?

Posted by: KOO-MO BEAN | October 8, 1908 7:58 PM | Report abuse

All I want for Christmas is these crooks to all go to prison for life!!!! It would be nice to replace all of Congress too as they are are all in on this corrution,wake up!!!!

Posted by: J.Smith | October 8, 1908 7:58 PM | Report abuse

Edward Liddy, shame, shame, shame....and now I see why my AllState insurance is also worthless.

Posted by: KyLewis | October 8, 1908 7:59 PM | Report abuse

Andrew Roche, good call.

This discussion forum is filled up with ignorant comments.

Posted by: teacher_2 | October 8, 1908 7:59 PM | Report abuse

Well as I scramble to pay my INSURANCE BILL this month to AIG...they are getting money for free from the American Public! Why should they care if EVERYONE employed by them takes a $400,000. dollar vacation it's not thier money right???
And the fed's will just give them more...right?
I agree with the comment about taking it out of Mr.Liddy campensation.....

Posted by: KittyCovello | October 8, 1908 8:00 PM | Report abuse

If every citizen of the USA (300 million population) received 1 million US dollars from the US Treasury, that would equal 105 trillion US dollars. Gosh, what a concept!

Posted by: Preschool Teacher | October 8, 1908 8:01 PM | Report abuse

The executives of Enron, WorldCom and others were prosecuted and convicted for "cooking the books", irreparably harming their employees, and causing their shareholders to walk away with only a few cents on the dollar for their original investments.

Sarbanes-Oxley was enacted to put the clamps on the accounting profession, requiring that everything be done right and above board. Whistle blower laws and policies are on the books of government agencies and virtually every business in the US.

Now we have a small percentage of the population, sitting in executive suites, who perverted our financial system for their own pleasure and to satisfy their lust for money. This small population of wealthy executives, and the members of their senior management teams have hurt every American and even those abroad who are now suffering the "after shocks" of their wheeling and dealing.

These senior executives should most definitely be required by the US Government to return their wealth to the US Treasury. They not only should be prosecuted for "white collar" crimes, but should also be tried for treason. Treason is the act of selling out your nation, and injuring your fellow citizens. What clearer example of treason can there be than the current economic chaos and pain casued by a handful of selfish, greedy executives - who put their own interests before the interests of their neighbors and their country?

In addition, the SEC should be disbanded and a new organization should be formed to assure that these abuses do not occur again. The SEC has "looked the other way" for years while these abuses and the individual greed of these wealthy few has run unchecked and unabated. Any SEC official who is found to have known key facts about the abuses and excessive risks taken by these large financial firms, and failed to pursue a thorough investigation, should at minimum be relieved of their duties. They should also be denied any accrued benefits or retirement funds that were part of their employment package. They too should be brought before Congress, under oath, to testify to the specifics of how we got to where we are now.

Let us return to the basic principles that fueled our economy for so long. Let's return to "an honest day's pay for an honest day's work". Let us return to fair and reasonable compensation for company management. "Golden Parachutes" should be made illegal. Stock Options, if they are to exist at all, should be limited to a small percentage of the total shares outstanding that an executive may own. These stock options should also be offered the "rank and file" of the company. Let us return to giving jobs to American citizens first, and then employ foreign labor only as a last resort.

Posted by: BobJ | October 8, 1908 8:01 PM | Report abuse

If I sit a bucket of money in my front yard and somebody steals it, that makes them a thief. And it makes me an idiot. Jail the thieves, get rid of the idiots, and STOP DOING THE VERY THING THAT CAUSED THE PROBLEM IN THE FIRST PLACE!

BTW, the Federal Reserve is NOT the government. It's a freaking bank that loans out money it doesn't even have! Why doesn't congress make a law against that? Is it so hard to understand that this would eventually cause some serious problems?

Posted by: Firebird | October 8, 1908 8:02 PM | Report abuse

Congress won't let AIG die. Pelosi has $500,000 of investments in that. Can you say conflict of interest? Anybody notice how enthusiastic she was in getting the thing passed? You can thank the bailout package for bailing out Pelosi, not the average joe who's just lost his home.

Posted by: TL40 | October 8, 1908 8:02 PM | Report abuse

ttttttt were in more debt now

Posted by: popppo | October 8, 1908 8:03 PM | Report abuse

No more "bailouts" or "rescues"--let these companies fail.

Posted by: dee | October 8, 1908 8:03 PM | Report abuse

Only ten AIG employees were in attendance and the trip was planned in 2007.
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AIG paid for the trip, right, with tax payer money.

At the very least etiquette would demand they at least APPEAR to understand their a$$es were spared, at least for the moment.

Apparently, that didn't quite sink in.

Do you really think they will survive?

I don't.

Posted by: Anonymous | October 8, 1908 8:03 PM | Report abuse

Most of the comments posted seem to eminate from ignorance - did anybody notice it is AIG lending securities to the Fed? All of you need to go back to 3rd grade and learn to read.

Consider remedial math while you're at it. No wonder you complain about being poor.

Posted by: Another Bob | October 8, 1908 8:04 PM | Report abuse

This story really is disgusting. "Standard Industry Practice" is a self-fulfilling prophecy. Everyone can point to their peers and say, look, they're doing it too. AIG if your peers jumped off a bridge would you do that too? Please? Maybe you should try thinking for yourselves instead of being lemmings like the rest of the financial industry. They all followed each other right off the cliff carrying our money.

Two other points: 1. Pam, if you just handed a million dollars to every American (all 305 million) that would be 305 trillion dollars, you were off by a few decimal places. Plus you can't just give everyone a wad of money, that would cause insane inflation.

2. Both parties share the blame. To the imbeciles trying to say the dems are to blame, what about all those years when you had a Republican congress and president? (2003-2007) That seems like plenty of time for them to have fixed Fannie/Freddie and whatever other talking points I hear reiterated by the less educated.

Posted by: Whitey | October 8, 1908 8:05 PM | Report abuse

I have a feeling that Mexico and Canada will have to be protecting there border in the future, not the United States.

Posted by: Mike | October 8, 1908 8:05 PM | Report abuse

AIG will come out of this fine. Give it a few years they will be in great shape.

They have a consistent flow of cash into the company, which as you can see by the remaining banks (Citi, BOA, JPM), if you have consistent cashflow, you will turn out alright.

It will just be the shareholders equity that is going to take a hit by the investment restrictions they will take (and in turn, your retirement annuities with them will give you a lower return as well).

Posted by: teacher_2 | October 8, 1908 8:06 PM | Report abuse

If fraud was involved, all these bums should spend some quality time in the slammer. We saw justice at Enron when both the CEO and CFO were sent to prison. But, nothing happened to the bums at Fanni or Freddie, although fraud was rampant and the books were cooked in order for the top officers to receive millions in undeserved bonuses. Franklin Raines was the CEO of Fanni when it folded, and he's obviously one of these bums that needs to go to jail. Mr. Raines received well over $100 million in bonuses from Fanni for booking, packaging, and selling trillions of dollars worth of subprime mortgages. This represents the bulk of the toxic loans that has caused the current global economic crisis. But like so many others, he wasn't even prosecuted. Might have something to do with the Government's heavy handed encouragement to book as many of these sub-quality loans as possible.

Posted by: tiggerman | October 8, 1908 8:07 PM | Report abuse

I have a feeling that Mexico and Canada will have to be protecting there border in the future, not the United States.

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From kooky Wall Street executives and Washington politicians, on the lam?

Who can blame them?

Posted by: Anonymous | October 8, 1908 8:07 PM | Report abuse

Well I don't know about anyone else but when I can't afford a vacation I cancel it! AIG has knowed for MONTHS they were in trouble, they should have cancelled their plans to save money. Where is the oversight committee now? When is someone going to protect the people paying for this? When is the government going to start looking out for the tax payer? AIG needs to be investigated and someone needs to be held accountable for the financial mess they are in. Something needs to be done NOW!

Posted by: Sandra A. | October 8, 1908 8:08 PM | Report abuse

Don't ever forget inflation.

Posted by: Preschool Teacher | October 8, 1908 8:08 PM | Report abuse

I agree with Nowell-let 'em sink! All of the other businesses have to eat it up and declare bankruptcy when they fail. The government does not step in for them-why should they for big corportations?

Posted by: ghostygirl | October 8, 1908 8:09 PM | Report abuse

I think it's time for all American's to band together and revolt. Maybe Washington would grasp the concept of how we, as the People, feel THEN!!! And, to those who are criticizing those who are in foreclosure, if you own a credit card, SHUT UP! No one should or would be approved for a mortgage that they can't pay back! However, the losses of income create the inability to pay! Small companies down-sizing to ensure that they don't go belly-up does NOT ensure job security to those being let go!!! Take your credit card and BUY A CLUE!!!

I'm all for taking down the entire freaking government. Screw the big companies. Everyone take your money OUT of them, sell ALL your stocks and bonds, collect on any insurance policy you can. Let all the companies go belly up. We'll start from scratch. It's time for the Bill of Rights to be subjected into focus. Now is OUR time. We hold these truths to be self evident..........

Something HAS to be done. And we as American's have the power, if we can all band together to bring these jackasses down, America can belong to the People again-as it SHOULD be!!!!

Any takers? usmc33girl@yahoo.com
(that's right....i'm MILITARY!!)

Posted by: Lisa | October 8, 1908 8:10 PM | Report abuse

Most of the comments posted seem to eminate from ignorance - did anybody notice it is AIG lending securities to the Fed? All of you need to go back to 3rd grade and learn to read.

Consider remedial math while you're at it. No wonder you complain about being poor.

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Posted by: Anonymous | October 8, 1908 8:10 PM | Report abuse

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