Wanna Know Why AIG Went Bankrupt?

10/10/2008 12:27:00 PM

(0) Comments

{ef48aa3b-fbdb-49bc-a083-e568a9ab5777} Because all they do is party!  And now, all they do is party on taxpayers money!  Now, there is now ANOTHER shindig that has been learned of.  And remember, they were bailed out by the feds on September 17th to the max amount of $85 Billion, which now has been raised as of this past Wednesday to $122.8 Billion.  Here's your tax dollars hard at work...... . for AIG.  As usual, bankers using your money for their funtime and playtime.

First there was the $440K St. Regis Resort in Monarch Beach, CA that was from September 22nd to September 29th which they were scolded by the Oversight Committee.  In that one $23,3xx was used for "spa fees".

Then there was the Ritz Carlton, Half Moon Bay, CA upcoming "convention" that was to host about 150 people at a $400 a night resort, which AIG canceled due to negative press.

Then there was the Mariott Marquis, in Atlanta GA to be thrown next week sponsored by one of AIG's main securities subsidiaries, FSC Corp to the tune of at least 400 stockbrokers and their families although a "portion" was to be paid by the attendees, however that amount has not been disclosed.  And as of this point, the convention is still on.

Then there was the 35th Anniversary Party at the Smithsonian sponsored by another AIG subsidiary called International Lease Finance Corporation just a few days after the bailout, where ILFC paid the Smithsonian over $27K just for janitorial and security services.  Further amounts have not been found or made available.

But alas ANOTHER party has been learned of.  This one again was just a few days after the bailout on September 28 - September 30.  This one is for a golf retreat at the Mandalay Bay Resort in Las Vegas, the NY Post reports.  And they possibly spend $500K at this one.

NY Post: The Post has learned that officials [at AIG] spent tens of thousands a day on golf outings after collecting a huge government bailout...

The golf and spa outing Sept. 28-30 came just two weeks after the Federal Reserve stepped in Sept. 17 to save AIG from imminent bankruptcy from it bad bets.

The outing for 50 AIG representatives - said by several sources to cost as much as $500,000 - was at the Mandalay Bay Resort in Las Vegas. Hosting the junket was Keith Burger, the national sales manager of AIG Sun America's wholesale variable annuities unit, and Leslie Hunnicutt, the unit's managing director.

An AIG spokesman called the Mandalay Bay outing a "sales and training event" and disputed claims it cost $500,000, saying it cost only about $50,000.

Where are our Representatives in Congress?  I would like an answer as to WHY these parties happened, AIG's justification as to WHY they continued with these parties AFTER a bailout.  WHY are companies spending money on "parties" when they are in the red to the tune of being bankrupt.  And WHY is this not being closely monitored by the Oversight Committee?  And WHY are we giving them more money?  Time to call in the loan, and time for AIG to make it or break it.  Seems to me that the Oversight Committee could and should nail AIG for misappropriation of funds, and do what they said they were going to do.  Make banks accountable for their actions.  Oh wait, what am I saying.  I'm expecting the government to do what they said they were going to do..... silly me.


Misery Index

0 Responses to "Wanna Know Why AIG Went Bankrupt?"

Post a Comment