AIG Massaged With Federal Rescue Funds
 Wednesday, October 8th, 2008  by Connie T.

St. Regis Resort in Monarch Beach,
where AIG employees were lounging around with our tax dollars

In 2000, according to Forbes, AIG was the 18th-largest company in the world. American International Group hit a financial crisis this year, however, and turned to the U.S. Federal Reserve for a rescue package to save them from going under. The Federal Reserve Bank of New York granted $85 billion for the effort (no, they didn't ask you first) through a credit-liquidity facility, the largest bailout by the Federal government of a private company in history other than the Fannie Mae and Freddie Mac bailout. Oh, and now the $850 billion bailout of who-knows-who by Treasury Secretary Henry Paulson.

This was in mid-September. By October 3rd, AIG had already withdrawn $61 billion from the emergency loan. Former AIG CEO's Martin Sullivan and Robert Willumstad were questioned by the House Committee on Oversight yesterday.

Lawmakers revealed during the grilling that one week after the government bailout, AIG spent over $440,000 for a meeting at an upscale resort in California, including $23,000 in spa treatments. Manicures, pedicures, massages, etc. $7,000 was spent on golf outings.

Senator Barack Obama brought this up in last night's presidential debate, stating these funds should be returned.

Let me say that this does not surprise me. I was in the insurance industry for a while, and although working in insurance may sound ho-hum, agents and employees are rewarded greatly for their efforts throughout the year.

Meetings are typically held at spa resorts, occasionally with the spa services portion covered; the destinations are usually sunny California or tourist attractions in Florida; meals are catered to the hilt and open bars are at your full service nightly; and insurance conventions are overflowing with swag from golf balls and coffee mugs to gift bags and gift certificates.

Give me a moment to recall why I left the insurance industry.

Anyhow, the former CEO's were grilled about as intensely as those from the Lehman Brothers on Monday. They were told they owe an apology to the American people. Which isn't the same as asking for the money back, now is it? The company is now under pressure to sell of its businesses to the highest bidders as early as this week.

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