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Ear to the Ground

AIG Execs Enjoy Sun and Fun on Your Dime

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Posted on Oct 8, 2008
starwoodhotels.com

The view from the beach at the St. Regis resort in Southern California, where AIG execs spent hundreds of thousands of dollars shortly after they were granted an $85-billion government bailout.

What’s $85 billion if you don’t get to spend it? Just days after taxpayers saved AIG from ruin, executives of the insurance giant spent $440,000 pampering themselves at the exclusive St. Regis resort in Monarch Beach, Calif.

That bill will essentially be passed on to the taxpayer, argued Rep. Elijah Cummings, who—along with Rep. Henry Waxman, Barack Obama and others—has called for the person or persons responsible to be fired.


Guardian:

The House oversight committee, which is investigating the company’s problems, confronted AIG executives with an invoice from the St Regis resort in Monarch Beach, south of Los Angeles, detailing an eight-day company event which began five days after the rescue.

“Average Americans are suffering economically,” said Henry Waxman, chairman of the committee. “They are losing their jobs, their homes and their health insurance. Yet less than one week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation.”

The bill shows that AIG spent $139,375 on rooms, $147,301 on “banquets”, $23,380 on spa treatments and $6,939 on golf at an eight-day company event which began on September 22.

“US taxpayers will be, in effect, paying for this,” said Elijah Cummings, another Democrat, who demanded to know who was responsible for the outlay. “I think that person ought to be fired.”

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By CaptRon, October 8, 2008 at 10:34 pm Link to this comment

I’m trying to take my country back and I know it’s a long process. I want to start here with this blatant snub to me and my compatriots. I didn’t take the time to read all previous comments as I like to do usually, but my attitude is this:

I don’t just want our money back, or just one lead figure singled out & reprimanded. I want all who participated gone from my company, now. I want my company’s money back, all $440K, not from the company till but from each of the personal assets of those that attended. I want them prosecuted if possible and investigated thoroughly for past improprieties, then blackballed so they won’t get another chance to steal from some other business which may end up costing myself & my compatriots future money & grief. I want those recompensed funds from those people held in a fund to be used to right the wrongs of their injustices in some fashion, or at least repaid back to me the taxpayer. I see no other or better way to get this message across then to put these people in a prison, and not one of those country-club types. They’re hard-hearted criminals & deserve actions to befit the crime. White-collar crime sets the standard for the less fortunate. It sends the message that taking a chance on the criminal path can be very rewarding with prison time even being almost respectable. Look at those who have served, they are back doing crime again but starting with more contacts (i.e. Tom Delay types). Over-sight people, do your job. You know what I want and I’m watching you too.

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By Don Stivers, October 8, 2008 at 9:16 pm Link to this comment

This country voted buffoons into office and this country must deserve what it gets.  I’m just sorry that the people I wrote in never had a chance to serve honorably.

And then these buffoons ignore the voice of the people who voted them into office by 9 to 1.

So what do we get for our taxes?  Not infrastructure or teachers and engineers.  No!! We get dead beats and slime balls.  How do we win?  Vote out anyone who voted for the bailout!

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By felicity, October 8, 2008 at 3:51 pm Link to this comment

From the glossy recently dumped in my mail box - just so you all know what ‘services’ are presently available at the spa of your choice:  restylane, juvederm, perlane, invisalign orthodonics, smile design, mineral makeup, waxing, cellulite reduction, microdermabrasion, thai massage, body contouring, breast enhancement, facial rejuvenation, botox, dermal fillers, fractional laser, laser hair removal, IPL laser therapy, image consulting - and finally the coup d’etat, Harness your power for transporation. (Meaning?)

Thought you’d be relieved to know that we didn’ pay for nothing. And, do hope you were able to pay this month’s water bill so you can wash your face tomorrow morn.

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By Pam from Laguna, October 8, 2008 at 11:13 am Link to this comment
(Unregistered commenter)

It really doesn’t matter who deserved to go on this junket & how far in advance this was planned. It just sends another inappropriate message about how arrogant the insurance business is! I am glad I didn’t know they were down the street…

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By The Grey Fox, October 8, 2008 at 10:11 am Link to this comment
(Unregistered commenter)

What is going to be done to hold the executives of these companies that drove the companies in the ground and laughed at Congress and the American people for being so dumb as to give them a bailout? I am watching all my savings and investments go down the drain. I saved over a 37 year career for retirement. What I am suppose to do? Who will make me whole again? I don’t think it is too much to ask for someone to be held responsible and to recoup the funds they stole. While they are taking trips to hotels that wouldn’t even allow me to cross their doorstep. I watched some of the testimony in front of Mr. Waxman’s committee and their arrogance was just unbelievable. The people of America deserve better! These executives should be sued by the American people and the Federal government and all of their wealth should be stripped away. Let them live in a $200,000 house.14 million dollar mansions, art collections etc. It is abusive! Their pay packages should be confiscated, their houses sold, their art collection sold to a museum where we can all enjoy them and let them figure out how best to go forward. I am just so sick of all this mess and the hand slaps given to thieves, no accountability, no nothing. They should all go to jail! I have worked, brought houses, sold houses, saved, paid my bills all my life and this is what I get for trying to be an upstanding citizen?

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By Inherit The Wind, October 8, 2008 at 8:06 am Link to this comment

It’s chump-change compared to 85 billion…To a man with a billion dollars a million is like 1 dollar to a man with a thousand dollars.

But it’s the sheer audacity of it that’s infuriating people.  As it should.

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By Tommy, October 8, 2008 at 8:02 am Link to this comment
(Unregistered commenter)

Mr. Waxman and Mr. Cummings need only look in the mirror to see who’s responsible.

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By AT, October 8, 2008 at 7:58 am Link to this comment
(Unregistered commenter)

On the Wall Street Journal op-ed piece today, Murdoch stated through his mouthpiece, that what we need is low taxes (how low ?) and more skilled immigrant workers( to steal jobs from Americans). How much Rupert?

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By Carmen, October 8, 2008 at 7:22 am Link to this comment
(Unregistered commenter)

This behaviour is exactly the reason why the American taxpayer was very timid supporting the bailout initiatives.  While the middle class is fighting to survive amidst health insurance increases (PacifiCare in Colorado increased the rate 36% for small business groups - outrageous), credit limitations, increased food prices (soup and casserole is now the main course in my house), dropping FICA scores which has a domino effect on car insurance rates, etc; the continuing drop in home values which disqualifies anyone (even with a good and/or excellent FICA score) who’s trying to refinance.  People who paid 20% down are now at a 100% thanks to the high foreclosure rate. 

I wonder if my bank would take me to a resort and discuss my bankruptcy proceedings while I have a facial at their expense.

Their is too much of the “ME” syndrome in America starting at the family level all the way to the Corporation- and Government levels.

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By Rodger Lemonde, October 8, 2008 at 6:56 am Link to this comment
(Unregistered commenter)

The organizers should perform community service in poverty areas. For how long? Say until they have met the amount they wasted at minimum wage.

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By troublesum, October 8, 2008 at 6:40 am Link to this comment

In a democracy these people would be in jail, but this is probably commonplace in facist states.  Now if a single mother bought beer with food stamps, oh Jesus, the country is going to hell!

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By Joeseph Schmoltz, October 8, 2008 at 6:13 am Link to this comment
(Unregistered commenter)

So someone thought this would be different?

This is typical behavior for the homoupperclassasour when it trouble, go on vacation.

I have to laugh about the outrage here, think of the good side, at least they spent our money in the USA, and perhaps some of this money will help the St. Regis wait-staff, parking lot attendents, and the janitors who will clean up their puke.

It’s called “trickle down” (or tinkled on if you prefer)

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By hippy pam, October 8, 2008 at 6:13 am Link to this comment

They should be ARRESTED-TRIED-CONVICTED-STRIPPED OF ALL ASSETS-WHICH SHOULD BE SOLD AND THE MONIES RECEIVED SHOULD BE FOLDED BACK INTO THE COMPANY THEY DEFRAUDED…..YES…DEFRAUDED…..THEN THEY SHOULD GO TO PRISON-[or MAYBE EVEN FACE “the ultimate sentence”]...AND NOT A “RESORT” STYLE PRISON WHERE THEY GET PREFERENTIAL TREATMENT…

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By Anthony A, October 8, 2008 at 6:03 am Link to this comment
(Unregistered commenter)

Strange, when you watch the video of congress blasting the AIG executives you get an odd feeling of discontinuity.  Cummings, Waxman and Maloney, the most vocal detractors, all voted for the bailout bill less than a week ago.  The logic escapes me here - they voted 700 billion into the hands of known liars and frauds and then when those same people turn around and do, with taxpayer money, what they’ve been doing with shareholder money for years everyone is up in arms.  This scenario is so old they’ve written proverbs about it but here we are indignant that these “executives” and their massive senses of entitlement (second only to their massive fraudulent behavior) have set to work fleecing a new set of marks.  Sad.

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By Jim Yell, October 8, 2008 at 5:45 am Link to this comment
(Unregistered commenter)

These people and most certainly this class of business people should be investigated their assests should be frozen until we can decide just how much of their money was stolen by manipulation and corruption of our government and regulatory agencies.

They should be made to pay.

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By Manish Patel, October 8, 2008 at 5:37 am Link to this comment
(Unregistered commenter)

I am glad, Lawmakers are outraged, they ought tobe. But they also forgot when they point a finger at somebody, rest of the fingers are pointing back to them. How about their lavish health insurance at taxpayers’ cost when millions are uninsured? How about top government employees doing the same thing when ordinary American couldnot go to vacation because of jobloss? How about their children going to best schools and colleges when ordinary citizen can’t afford higher tutions in colleges? CAN THEY ANSWER THIS?

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By MickNicks, October 8, 2008 at 4:49 am Link to this comment
(Unregistered commenter)

AIG is currently my Auto Ins company . . . . I will most definitely be changing my Insurance company!

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