Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
AIG: Your taxpayer dollars at work
Old 10-07-2008, 02:37 PM   #1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,113
AIG: Your taxpayer dollars at work

AIG execs went on $500K retreat within days of taxpayer bailout

Rep. Elijah Cummings, D-Md., described what investigators found during a hearing this morning on Capitol Hill:
Quote:
After the bailout of AIG last month, the United States government effectively bought an 80% share in the company. That should have caused a fundamental change, you would think, in how the company was spending funds on compensation, bonuses and benefits. But it doesn't look like that's what happened. The committee learned that shortly after the bailout went through, executives from AIG's major U.S. life insurance subsidiary, AIG American General, held a week-long conference at an exclusive resort in California.

The resort is called the St. Regis Monarch Beach. ... It's very impressive. This is an exclusive resort. The rooms start, gentlemen, at $425 a night. Some are more than $1,200 a night.

... We contacted the resort where AIG held this week-long event, and we requested copies of AIG's bills. We learned that AIG spent nearly $500,000 in a single week at the -- at this hotel. Now, this was right after the bailout.

... Let me describe some of the -- the charges that -- that the shareholders who are now U.S. taxpayers had to pay. Check this out.

AIG spent $200,000 for hotel rooms, and almost $150,000 for catered banquets. AIG spent -- listen to this one -- $23,000 at the hotel spa and another $1,400 at the salon. They were getting their manicures, their facials, their pedicures and their massages while the American people were -- were footing the bill.

And they spent another $10,000 for -- I don't know what this is -- leisure dining.
"...another member of the panel explained that "leisure dining" means they drank at a bar."

Guess they figured they were toast anyhow, might as well have one last fling.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-07-2008, 03:00 PM   #2
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Wait a second! Corporate executives like to spend shareholder money on frivolous activities and opulent surroundings?

Somebody sound the alarm!
__________________

__________________
saluki9 is offline   Reply With Quote
Old 10-07-2008, 04:49 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Houston
Posts: 1,435
The cool thing about the interwebs is that you can actually see a copy of the $450,000 bill from the hotel:

http://oversight.house.gov/documents/20081007102513.pdf

To be fair, it was reported that this event was scheduled a year ago and was used as an incentive for the top 10% of salesmen, not just a bunch of execs on a corporate retreat. If you have employees who have worked to hit their numbers all year in pursuit of a bonus and then you yank it out from under them at the last minute, I'm sure most of your best performers are going to start looking for other employment - and if the best employees leave, how are the taxpayers going to get their $85B back? Regardless, it certainly looks bad for AIG.
__________________
soupcxan is offline   Reply With Quote
Old 10-07-2008, 04:52 PM   #4
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by soupcxan View Post
To be fair, it was reported that this event was scheduled a year ago and was used as an incentive for the top 10% of salesmen, not just a bunch of execs on a corporate retreat.
My employer has sent me to a couple of those. These things are planned and sometimes paid for well in advance, but yeah, the timing on this is terrible.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-07-2008, 05:09 PM   #5
Recycles dryer sheets
 
Join Date: Jan 2007
Posts: 222
Quote:
Originally Posted by soupcxan View Post
To be fair, it was reported that this event was scheduled a year ago and was used as an incentive for the top 10% of salesmen, not just a bunch of execs on a corporate retreat. If you have employees who have worked to hit their numbers all year in pursuit of a bonus and then you yank it out from under them at the last minute
You'll forgive me if I don't really give a sh*t. The fact that they still went on this "retreat" is ridiculous. I think the $85 billion bailout should be all the incentive the top salespeople need at this point.
__________________
CompoundInterestFan is offline   Reply With Quote
Old 10-07-2008, 05:14 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Tax dollars spent on a crazy war or this. Who cares
__________________
Notmuchlonger is offline   Reply With Quote
Old 10-07-2008, 08:27 PM   #7
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by REWahoo View Post
Rep. Elijah Cummings, D-Md., described what investigators found during a hearing this morning on Capitol Hill:
Are the politicians outraged-- or just envious?
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 10-07-2008, 09:07 PM   #8
Full time employment: Posting here.
 
Join Date: Nov 2005
Posts: 828
Reminds me of a silly, fun book I just finished reading:

Amazon.com: Executricks: Or How to Retire While You're Still Working: Stanley Bing: Books

Ignore the poor amazon reviews - for the most part the reviewers thought they were getting yet another biz self-help book. Instead, Bing delivers a thoroughly irreverent and highly tough-in-cheek (almost to the point of gagging) look at executive life. Recommended.
__________________

__________________
socca is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bear's and JP's Taxpayer Gift...from the Fed RockOn FIRE and Money 2 03-23-2008 07:29 PM
This is sad, wanna work for 7 dollars an hour? newguy88 FIRE and Money 105 01-10-2008 04:41 PM
FYI: Taxpayer bailout of Countrywide Zoocat Other topics 3 11-28-2007 11:03 AM
Your tax dollars at work: another customer service story. Nords Other topics 11 08-14-2006 03:47 PM
Your Tax Dollars at Work JPatrick Other topics 5 02-02-2006 09:54 PM

 

 
All times are GMT -6. The time now is 12:13 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.