Upon reading an article from the Washington Post, I came upon this bit of information about AIG that made me sick to my stomach.

Yesterday, it was announced that AIG will be getting another bailout, $38 billion dollars (to be exact) from the government to assist them from going into bankruptcy.  This was announced only one day after it was revealed that AIG had sprung for a $440,000 spa vacation shortly after getting the initial $84 billion government bailout.

According to AIG, they say they have already drawn down $61 billion on its $84 billion line of credit from the government.  So now the New York branch of the Federal Reserve will borrow $37.8 billion in investment-grade securities from AIG in exchange for the cash.

With respect to that $440,000 spa vacation retreat…about 70 of the company’s top performers were rewarded with a week-long stay at the luxury St. Regis Resort in Monarch Beach, California.  Reported expenses for AIG personnel including $200,000 for rooms, $150,000 for meals and $23,000 for the spa.

Now get this….just today, AIG announced that they will be cancelling another big company-paid trip to the Ritz-Carlton in Half Moon Bay, California.  The company had been planning another similar retreat for about 150 employees and brokers. But in deference to the company’s new rescuers — the U.S. government — the company decided to give it up.

Quote, The “cancellation is in recognition of the fact that we are in a liquidity squeeze and have to watch costs, and it’s a recognition of the sensitivity to any expenditures in this environment,” company spokesman Nick Ashooh said.

Geesh!  I am speechless and just disgusted!  I know that this kind of activity happens all the time in Corporate America…but with the economy is such upheaval, it’s more than I can swallow.

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