AIG executives went on luxurious retreat one week after receiving $85 billion bailout.
AIG executives went on luxurious retreat one week after receiving $85 billion bailout.
Today, the House Oversight Committee discovered that, just one week after the federal government bailed out insurance giant AIG, company executives went on a retreat to a luxury resort. The executives spent nearly $500,000 on manicures, facials, pedicures, and massages, among other things. During a hearing today, Rep. Elijah Cummings (D-MD) asked, “Have you heard of anything more outrageous?”:
CUMMINGS: Let me describe for some of you the charges that the shareholders, taxpayers, had to pay. AIG spent $200,000 dollars for hotel rooms. Almost $150,000 for catered banquets. AIG spent $23,000 at the hotel spa and another $1,400 at the salon. They were getting manicures, facials, pedicures and massages while American people were footing the bill. And they spent another $10,000 dollars for I don’t know what this is, leisure dining. Bars?
Watch it:
The Gavel has more details of the total bill, including a copy of the invoice documenting AIG’s luxurious retreat.
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What was this — the equivalent of a toga party while on double secret probation?
October 7th, 2008 at 2:03 pm.
… And yet many a (former)homeowner that was swindled out of their home slept on the street.
.
October 7th, 2008 at 2:03 pmIsn’t that what they call Capitalism? The American way? Greed, corruption, stealing from the public coffers is just soooo Conservative.
And like most of us said that this is exactly what they would do with the money.
October 7th, 2008 at 2:04 pmAnd McCain wants to tax people for health care benefits while people like this get a $500k spa treatment on the government for free while their coporation gets to deduct it from their taxes.
October 7th, 2008 at 2:05 pmRemind me again, how do you spell P R I S O N??
October 7th, 2008 at 2:05 pmOf course AIG needed the bailout.
With what money would they had paid the hotel rooms, spas, massages, pedicures, and the other must-have expenses?
If you silly libs stopped complaining, maybe trickle-down economics would work its magic, and you could, one day, get a manicure at your local beauty salon too. Silly libs. Stop being such welfare queens.
/sarc off
October 7th, 2008 at 2:06 pm$400 haircut for demo candidate for POTUS–Criminal!!!! and talked about incessantly for weeks in the media….
October 7th, 2008 at 2:07 pmThousands for bailed-out execs to get pampered at spas….oh, it must be OK because they’re conservatives…and MSM will probably never cover it. Makes me want to be ill….
No, no, don’t you see? They need to do this so they can “retain talent at the executive level.” You know, because the current set of executives is so talented.
October 7th, 2008 at 2:08 pmLisa FTW, I’m sure McCain spends more than $400 everyday for a makeup artist to cover up that big red scar on his face.
October 7th, 2008 at 2:09 pmthe gop’s endless
welfare for the rich.
*
good luck.
#
October 7th, 2008 at 2:10 pmWell, at least they’ll look and feel good when they burn in hell.
October 7th, 2008 at 2:11 pmExcellent point, Gregor. And then the poor bellhops, massage therapists, manicurists and bartenders would have lost out on that income. Why, it’s class warfare, I tell you!
October 7th, 2008 at 2:11 pm.
Nothing like going to a Five Star Restaurant and running up a tab of a few hundred to balance your checkbook, the day after you declare bankruptcy.
.
October 7th, 2008 at 2:12 pmSomebody tell me why we don’t do that tar and feathering thing any more.
October 7th, 2008 at 2:13 pmLet’s face it: we all got f ucking snowed, just as thoughtful observers anticipated, and we’ll probably hear similar stories out of the firms that reap the benefits of this ill-advised $700B bailout. Make no mistake–the conservative world view, particularly in its current incarnation, rejects action in the service of the “general welfare,” as the Constitution would demand of its officials and its citizens; conservatives act instead only for their own welfare, and usually at the direct expense of everyone else. In my view, that makes conservatism–again, in its current manifestation–inherently counter to everything that the United States philosophically represents.
October 7th, 2008 at 2:14 pmW is speaking right now and I would have listened better except that I didn’t want to have to throw something at the television.
October 7th, 2008 at 2:16 pmAnd can is say that the Republicans love to talk about small business owners, blah, blah, blah. As a small business owner can I say that if you’re making over $250K a year you’re not the average small business owner. And if that profit is because you’re a sub S corp. instead of a C corp. then too effin’ bad for you. Otherwise we need to start differentiating between actual small business and mid-sized business so they stop deceiving the American people into unfair tax policies. /rant
October 7th, 2008 at 2:19 pmLeisure dining is code for strip clubs. At least some of that money made its way back to working people.
October 7th, 2008 at 2:19 pmOh sure getplaning, and now they’re going to tell us how all those strippers are just trying to send themselves to college. **eyeroll**
October 7th, 2008 at 2:21 pmShayne Says @ 14:
Somebody tell me why we don’t do that tar and feathering thing any more.
PETA got upset over the feathers…
No, but seriously, I hear that drawing-and-quartering is staging a come-back. So much more colorful and telegenic.
October 7th, 2008 at 2:22 pmWe should put them all on their personal yachts and send them on vacation to the Somali coast.
http://www.WilyTrax.com
October 7th, 2008 at 2:25 pmAs Six Pack Joe said to the other Six Pack Joe (at the NRA meetin’) :
October 7th, 2008 at 2:26 pm“boy those ‘bama people are a bunch a whiners”
Those execs need to lose their jobs, their homes, all of their money, their families, and any sense of hope they might have left — then they MIGHT understand how sick and wrong this was.
October 7th, 2008 at 2:26 pmShayne Says:
——————————————————————————–
And can is say that
Shayne did you have a “Palin” moment there?
October 7th, 2008 at 2:29 pmWell on the HBO series John Adams they showed a tar and feathering and they used really hot tar. We can forget about the feathers.
October 7th, 2008 at 2:30 pmI’m listening to W speak and my brain is oozing out of my ears. Sorry.
October 7th, 2008 at 2:31 pmI really think we need guillotines on wheels and every time a politician speaks we have one sitting there just to keep them on track.
October 7th, 2008 at 2:32 pmEvery single AIG employee who attended needs to pay this money back.
I’d go for treble damages. That would be a start. Then, let’s go back and look at AIG’s “business retreat” records for the last seven years, compare the attendees with their bonuses, and get that money back, too.
PEACE
October 7th, 2008 at 2:38 pm$7k in what looks like greens fees. $33k “paid out” – whatever the hell that’s for and $21k “PSAV.” Does anyone know what that is? I would sure like to know how many people this was for.
October 7th, 2008 at 2:39 pmThey should have their “homes” turned into homeless shelters.
October 7th, 2008 at 2:39 pmralph the wonder llama Says: And then the poor bellhops, massage therapists, manicurists and bartenders would have lost out on that income.
See? Told ya trickle down economics and the invisible hand of the market would work. No wonder good help is hard to come by nowadays ;-)
October 7th, 2008 at 2:40 pmThe Wall St. White House strikes again.
We spend more annually on corporate welfare than welfare for those in dire need.
When those in need do get assistance, they’re branded as losers, no accounts & ‘generational failures’.
If you want to know the truth behind the bailout, follow the money. A select few have ran away with billions. The money is no longer in the market.
SHOW ME THE MONEY!
October 7th, 2008 at 2:40 pmAnd the ‘Liberal’ MSM will react with how much outrage? I’ve sent a link to everybody I know, and hope they do the same. If the Dems don’t capitolize on this one, they’re living below my worst expectations, and that would take some doing!
October 7th, 2008 at 2:43 pmImpeach Pelosi, Cheney and Bush and Save the Constitution!
Next time someone tries to justify to me these perks as a way to retain “talent at the executive level”, I swear, I am going to slap them silly…
I could have run AIG into the ground (and Freddie Mac, and Fannie Mae, and WaMu, and…) for a fraction of the price these morons with all their fancy universe degrees, and MBAs got to take home in salary, bonuses, stock, etc.
I could have saved everyone millions, millions, I tell ya!
October 7th, 2008 at 2:44 pmAny bets Obama manages to get this story in at tonight’s debate? If ever a story was designed for him, this would be it!
PEACE
October 7th, 2008 at 2:45 pmDavidHart Says:
$21k “PSAV.” Does anyone know what that is? I would sure like to know how many people this was for.
PSAV is usually associated with the Audio-Visual professional services for big splashy multi-media presentations at corporate meetings.
Or in this case, the DJ for the rave.
October 7th, 2008 at 2:46 pmWith a criminal at the helm for 8 straight years, by now we are drenched in corruption. The system is so wicked, we are unable to prosecute and bring to justice this evil ruler at the top of this criminal pyramid. We’re just not doing anything and the window of democracy is almost shut.
As a country we lack unity and initiative. The word is out but we just sit on our couches and watch dvd’s while the fat cats splurge and the idiot GWBush is almost halfway through the list of ten easy steps to fascism (closed society). Who would have thought that amidst all this crisis we would stand so dysfunctional, confused and divided? We are running out of time!
October 7th, 2008 at 2:48 pmAlthough I will vote for Obama, the line used that we have the power to change our government thru elections is a big myth! Nothing changes. We can replace one greedy bastard and 3-4 more will take his/her place. They are all bought and paid for by the banksters, crooksters and lobbyists, yes even Barack Obama. The only thing that will change our government is a revolt against it.
October 7th, 2008 at 2:54 pmAnd Cheney’s response?
“So?”
Kinda gets us right in the ol’ cajones, no? Do you think anything other than outrage will result from these revelations? I don’t think so. Do you think we’ll see any of this money returned? I don’t think so. Do you think we’ll ever have ANY type of accountability ever again? I don’t think so.
Wonder why only 9% of Americans are satisfied when it looks like 95% of us are getting screwed…
October 7th, 2008 at 2:58 pmmachost Says:
Wonder why only 9% of Americans are satisfied when it looks like 95% of us are getting screwed…
Hmmm, are you implying that 4% enjoy getting screwed?
October 7th, 2008 at 3:03 pmNot the good kind of screwing either!
Where the hell are Darlyy and Backup defending these lowlife corpowhores?
October 7th, 2008 at 3:05 pmMary,
I had to account for the 2% of masochists, 1% of apologists, and 1% go both ways :D
October 7th, 2008 at 3:07 pm6 die in family murder-suicide in Los Angeles gated community; financial problems cited
October 7th, 2008 at 3:08 pmSad story from yesterday.
http://www.latimes.com/news/nationworld/nation/wire/sns-ap-bodies-found,1,4869714.story
InTrade Obama 69.5% / McIIIrd 30.5%
28 days.
October 7th, 2008 at 3:09 pmThis is easy. This was an unapproved expenditure (at least I, a taxpayer who bailed out AIG, did not approve it) and those who benefited from the expenditure must pay back the value of what they improperly received.
Divide the total bill by the number of AIG people attending the retreat and tell each of them to make a check payable to Uncle Sam for their equal share. Impound all salaries, 401k accounts, expense accounts, etc., until the Treasury has a cashed check in hand from every one of those AIG bastards.
See, simple.
October 7th, 2008 at 3:12 pmthe rich in this country will *never* let themselves go destitute, and instead will do whatever they can to insure they continue their ridiculously luxurious lifestyles, including (!), bribing members of congress to sucker the american taxpayer.
folks, this country is finished. and this congressional hearing makes a mockery of our indigation. it’s literally adding insult to injury.
October 7th, 2008 at 3:13 pmHey, just because these execs screwed the pooch and dragged their company (and my retirement account) into the dirt of bankruptcy doesn’t mean they aren’t still elites, entitled to all the props and perqs thereunto appertaining…
There is an infallible unit of measure by which to chart the seriousness of any financial “crisis.” If no traders or brokers have defenestrated themselves, it’s no crisis but is merely extortion from the State by the banks.
October 7th, 2008 at 3:16 pm“And then the poor bellhops, massage therapists, manicurists and bartenders would have lost out on that income.”
this is simply untrue. they only would have *lost* the income if, in fact, it was taken away from them once they had it.
but if they never had the income to begin with, then they could never have had it taken away.
in any case, i really doubt that resort is suffering for clientelle. it’s an ugly-ass resort anyhow….
October 7th, 2008 at 3:17 pmI’ve noticed several comments wanting criminal prosecution and punishment which was also my first thought. But I don’t know what section of the US Code they violated. Does anyone know if there is anything actionable in this? Is there some sort of fraud that can be charged? Or maybe the best approach would be for a civi suit from some shareholders? This is utterly stupefying.
October 7th, 2008 at 3:24 pmFor a spot of shock and awe (and laughs) everyone here should watch this 9 minute discussion of the sub-prime crisis and it’s ramifications which was originally broadcast about 1 year ago–in the UK:
http://tinyurl.com/4eoetg
October 7th, 2008 at 3:26 pmMaybe the had a couple of those
Entertainment Books…..
Where they can Buy one and Get One Free Deals…..
And they had to use the coupons in the Book before
October 7th, 2008 at 3:28 pmthey expire……
I told you guys this was nothing more than a last grab at the money before Bush leaves office.
October 7th, 2008 at 3:30 pmMaybe it’s time we erected – and manned – some barricades….
October 7th, 2008 at 3:31 pmSo are they actually going to do anything about it??
October 7th, 2008 at 3:34 pmAnd Joe Cassano chief of Financial Products, who brought AIG to its knees to beg for this bailout, was ‘forced’ into retirement keeping $38,000,000 in bonuses and being put on a $1,000,000 per MONTH retainer as a consultant. So he could tell the how to lose another $60,000,000,000.00 while assuring them they couldn’t lose even a single dollar? Please punish me like that!
Oh, and by the way, they changed their bonus rules so that their “unrealized” losses wouldn’t keep the senior capos from getting huge bonuses while the stockholders got bupkus!
October 7th, 2008 at 3:48 pmUncle Fester Lurks Says:
Although I will vote for Obama, the line used that we have the power to change our government thru elections is a big myth!
I am glad that you are voting for Obama. But I have faith that Obama is a different kind of politician. I may be wrong, but until I see it, I am not going to prejudge. You might want to try that too.
October 7th, 2008 at 4:01 pmOversight as in committee is an oxymoron, hey?
October 7th, 2008 at 4:02 pmThis is precisely why other countries laugh at our form of capitalism. $25,000 at the spa!?! $7,000 for golf?!?
This would be ridiculous even if AIG weren’t recently bailed out by taxpayers. If the ultra-wealthy don’t want class warfare, they sure have an odd way of showing it.
October 7th, 2008 at 4:18 pmAIG to taxpayers: LET THEM EAT CAKE!
October 7th, 2008 at 7:09 pmWe have met the enemy and he is us. Playing the blame game is not going to solve anything, even if it temporarily feels satisfying. The greed being exhibited goes much deeper than anything either party’s candidates seem to grasp. If I could wish change into happening, I might wish the following:
1. Forget either presidential party’s candidates as being the potential problem solver; neither is prepared
2. Un-elect every senator and representative who has been in office more than 2 terms; they are arguably not qualified to continue. Congress, in general, has allowed itself to become mostly impotent over the past 2 decades, giving more and more authority to the executive branch and blaming problems on the executive branch whenever it suits in order to be re-elected over and over.
3. Establish a definite plan and time table to turn the Washington D.C. Capitol into a museum and decentralize government agencies back to the respective states and constituencies; also as a model for the state governments themselves to begin; as it is simply archaic the way we do business with government personnel all located inside such a small radius. It’s very inefficient for large countries in this day and age of the Internet, closed circuit TV/ satellite communications. Why don’t we wake up? I still can’t believe we keep congress in a physical location for 200+ days per year! I could see some special events such as inaugurations allowing for huge gatherings, but the way we operate our federal government’s physical resources is inexcusable. As long as we keep federal business running like it has, there won’t be any substantial changes from any party or person, no matter what Obama says he can do. All he can do is feed it and let it grow even fatter and more indolent. IT (change) just won’t happen. The machine is too deeply entrenched. Move everyone back to their constituents where they are more readily accessible by those that really matter.
(It seems a lot of people think that greed is solely the preference of Republicans, or Corporate Executives, or whomever we are not; but in my experience, greed is a human problem everyone must vigilantly work to suppress and it seems it doesn’t care what your religion, political party, race, sex or creed: we are all susceptible to its influence and once we let it get into our habitual behaviors, it’s nearly impossible to stop without outside intervention; if anything, most of us are NOT guilty of what AIG execs did simply because we lacked opportunity, not the will.)
October 8th, 2008 at 1:47 pmWhere do you guys get off calling all of the guilty in this case Republicans or Conservatives? Do you have such little faith in your liberal and Democratic brothers that you think they cannot or do not attain such levels of employment and abuse the system just like everyone else? Get real! Bad people abuse tax dollars, bad PEOPLE are responsible for wasting tax dollars in all capacities. To say that Republicans/Conservatives are these people in this particular especially is a gross assumption.
If you self proclaimed “liberals/Democrats” are so keen on CHANGE – why don’t you get off your political soap boxes and realize that NOTHING in this country will CHANGE if everyone continues to look at people as Republican or Democrat or Rich or Poor and not just PEOPLE.
You guys spouting off so closed-minded and accusatory of “Republicans” are worse than the KKK. At least then when I walk down the street I know what I’m looking at. With you guys you pretend to be so open and caring for all people. Then you blame ALL “Republicans” for what some self-absorbed executives did.
Opinion is great – but blind hate for any class that you don’t belong to is just wrong. Grow up.
Sincerely,
October 8th, 2008 at 4:07 pmA Proud American
In response to “Proud American”
October 9th, 2008 at 1:35 amWho started the War in Iraq? a republican.
How many lives lost in Iraq because of lies presented to the American people by a Republican
Oil prices tripled during your republican’s tenure in the White House.
The financial collapse and the bailout = republican abuse of the system.
And you say we are like the KKK ???? You sir and your Republican croonies are the ones killing,pillaging and abusing America. Your upset because the public is speaking out against the corription that has ruined the “American Pride” of yesterday.
This is not a blind hatred, this is a very well deserved mistrust in the politics of our country.
Take your blinders off and look at reality Mister.