AIG Officials Blow $440,000 After Getting Taxpayer Bailout

http://www.foxbusiness.com/story/markets/industries/finance/aig-
executives-blow--getting-bailout/


If you'd just gotten a government bailout, you might be tempted to hold a
retreat at a nice California hotel -- and that's exactly what American
International Group (AIG: 2.39, -0.80, -25.07%) employees did.

The committee on Oversight and Government Reform held a hearing on
Tuesday at 10:00 a.m. Eastern time. to address and examine downfall of
AIG, the world?s largest insurance company. The committee planned to
discuss the financial excesses and regulatory mistakes that led to AIG?s
government bailout.

One of the items discussed was AIG?s expenditure of $440,000 for a
corporate retreat at the St. Regis Monarch Beach resort in Dana Point,
Calif., about midway between Los Angeles and San Diego. These funds were
spent on Sept. 22, a week after the Federal Reserve extended an $85
billion emergency loan to AIG to keep it from going bankrupt due to
insurance liabilities.

Click here to see the full hotel bill

According to the receipt from the St. Regis, the eight-day company
retreat was a lavish one -- $139,000 was spent on hotel rooms, while even
more money -- $147,301 -- was spent on banquets. Another $23,380 was
spent on undisclosed spa treatments and another $6,939 was spent on golf.
A full $9,980 was spent on room service and food and cocktails at the
hotel lounge.

AIG issued a statement saying that "This type of gathering is standard
practice in the industry and was planned a year advance of the Federal
Reserve's loan to AIG. We recognize, however, that even activities that
have long been considered standard practice may be perceived negatively.
As a result, we are reevaluating various aspects of our operations in
light of the new times in which we operate."

According to the statement, the event was held by one of AIG?s insurance
subsidiaries, not AIG employees. The attendees were independent life
insurance agents who were "top business producers" for AIG. Only about
10% of the attendees were AIG American General employees, and no
corporate executives from AIG headquarters attended the meeting,
according to the statement.

But the question still remains, couldn't these "independent" life
insurance agents have scaled their activities back a bit in light of the
company's bailout?

The St. Regis Monarch Beach resort is described on its Web site as ?a
landmark resort of legendary proportions.?

Legendary, indeed.

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