WaPo: After Bailout, AIG Executives Head to Resort (running up tab of $440,000)

[mod mom]

After Bailout, AIG Executives Head to Resort
UPDATED: 11:31 a.m.

Less than a week after the federal government offered an $85 billion bailout to insurance giant AIG, the company held a week-long retreat for its executives at the luxury St. Regis Resort in Monarch Beach, Calif., running up a tab of $440,000, Rep. Henry Waxman (D-Calif.) said today at the the opening of a House committee hearing about the near-failure of the insurance giant.

Showing a photograph of the resort, Waxman said the executives spent $200,000 for rooms, $150,000 for meals and $23,000 for the spa.

"Less than a week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation," Waxman said. "We will ask whether any of this makes sense. "

The committee will ask the company's executives about their multimillion-dollar pay packages -- some of which they continue to receive -- as well as who bears responsibility for the company's high-risk investment portfolio, which led to its near collapse just weeks ago.

-snip

http://voices.washingtonpost.com/livecoverage/2008/10/after_bailout_aig_executives_h.html?hpid=topnews

:mad:

[Overseas]

1. And they were probably slumming it by staying in the USA

and not hopping off to Tahiti or something.

[mod mom]

3. they were helping the country by providing jobs for the resort staff.

:eyes: WTF were they thinking?

[TahitiNut]

6. Tahiti isn't known for concrete "luxury" hotels and obsequiously pampering tourists.

It's actually quite a bit more rustic and down-to-earth than that. Even the most expensive resorts are extraordinarily earthy ... open-air and lacking in the usual accoutrements such as air-conditioning, TV, and the sterile crap that Americans think of as luxury. The attraction is the causal and participative nature of life - even tourist life.

[Overseas]

30. That sounds lovely. So I guess The Cayman Islands would've been more appropriate.

Then we'd get the resonance of Republican Cheney types who park their billions off shore.

[TahitiNut]

31. Oh, yeah. The Caymans is more concrete than coral, more fiberglass than palm tree.

Not to mention those overflowing "tax haven" bank accounts.

For example, while I do like Hawaii (more the idea of it than much of the actuality) ... the Ala Moana and Ilikai are lousy places to see it. Waikiki is too easily 'visited' by most in concrete cocoons. The most disappointing thing about Hawaii is how "paved over" it is. Tahiti is Hawaii without overhead power lines, concrete, or air-conditioning ... and with French food and fresh coconut, right off the tree. (You can fetch it yourself if you want.)

[valerief]

2. And watching MSNBC now, it appears AIG's CEO is Jean Harlow.

At least, he has Jean Harlow hair. (Well, with his accent, he might be Diana Dors.)

Rapists and pillagers. That's all they are. It would have been nice if some underpaid server at the resort slipped them all Ex-Lax in their meals. It wouldn't be justice, but it would provide a meager bit of satisfaction.

[Horse with no Name]

4. In the old days

They would have been retreating to a federal penitentiary....THIS is the Bush legacy.:mad:

[no_hypocrisy]

5. At least in this case,I KNOW where my money went . . . .

[loudsue]

18. It's enough to make ya puke.

But you're right: the $700 BILLION bailout is money we won't know where it went. Except we can pretty much be sure it's all in Swiss bank accounts by now.

[mod mom]

7. According to ABC-St Regis Resort in Monarch Beach, CA

The St. Regis Resort in Monarch Beach, California, was the site of a week-long luxury retreat for executives of the AIG insurance company, who headed there less than a week after the federal government committed $85 billion to bail out the company.

http://abcnews.go.com/Blotter/story?id=5973452&page=1

[mod mom]

8. Here's where our taxpayer dollars went:

http://www.stregismb.com/

[leftchick]

9. not too shabby

http://www.stregismb.com/index.cfm?action=getPage&pageID=4&navGroupID=1



:grr:

[mod mom]

10. nice amenities, wonder if it will be like this in clubfed:

Amenities

Each guestroom and suite feature the following amenities that bring you comfort and convenient technology.

Contemporary interiors furnished with custom-designed furniture and upscale residential accents
Luxurious 400 thread-count goose-down comforters and 300 thread-count sheets
Private balconies
Plantation shutters
5-fixture spacious bathrooms with exquisite marble accents, oversized bathtubs, separate showers and dual vanities
Remède bath amenities
Plush bathrobes
Fresh plants
Three telephones (one cordless)
High speed internet connection
NXTV in-room digital music, movies and game system
47' flat screen television
Wireless keyboard
DVD/CD player
Private safe
Mini bar
Programmable climate controls

[LeftHander]

11. And Fuld said he is only made 60 million in cash....with Lehman.nt

[spanone]

12. this shit stinks to high heaven

[leftofthedial]

13. they downsized their plans from the $25 million retreat in the Caymans

Poor folks needed it too, after all the stress of the last couple of weeks.

We should take up a collection so they can go again.

I'm glad Waxman is asking questions.

Uh, what difference do his questions make exactly? Oh, right. No difference at all.

[mod mom]

14. Waxman definitely deserves a shout out for nailing them on this!

[leftofthedial]

19. I'd shout louder if his nails actually had a hammer to go with them

other than a couple of hours of embarrassment for the thieves in front of the 10 or 12 thousand people who watch CSpan in the middle of the day.

[Marrah_G]

16. Most of the people going on the trip are not AIG execs

In fact I would guess only a small fraction are AIG employees.

The trip is for self employed, 1099, independant agents who do a certain amount of business with a subsidiary of AIG that has done pretty well. These are guys who make like 50k a year, some a little more, some a little less.

Had they canceled the trip that these agents worked towards for a 1.5-2 years as part of their compensation then AIG would have been liable for breech of contract.

Do I think the AIG execs ought to be fired for mismanagement without getting a dime and maybe even prosecuted (if anything illegal went on)? Absolutely.

These headlines are very misleading though and I hate seeing people flip out after being given misleading information. This happens to be the field I work in as an office admininstrator.

[leftofthedial]

20. cancellations of such events are always possible

it looks really bad

thanks for the clarification of the group involved though.

[Marrah_G]

26. This is part of the agents income though

it is taxed as 1099 income. It is something the agents worked towards for 18 months. I personally would sue if they canceled something I had worked for.

To explain it further: These trips are a way to get agents to submit most of their business to one company. It is part of their income. Say I submitted everything to AIG for 18 months, gave them all my business, because I would earn this trip. If they then canceled that, I would be out the trip when I could have submitted to company B instead and gone on their trip.

I believe AIG could be sued if they canceled this. They agreed to give the agents X in return for the agents doing Y amount of business. If the agent completes his side of the agreement AIG is reponsible to compensate them.

There are not employees going on a company trip.

I agree it looks bad, which is why I have spent two days trying to clarify. I hate seeing people freak out over information that is intentionally misleading. There is no love lost between AIG and myself. The only company I hate more is Genworth.

We work primarily with Americo. Last year 8 of my guys earned a trip to Switzerland. They are now halfway through the next contest to go to Budapest. We might have a few less making it since business is hurting right now.

here is some info:

Earnings

The median annual earnings of wage and salary insurance sales agents were $43,870 in May 2006. The middle 50 percent earned between $31,640 and $69,180. The lowest 10 percent had earnings of $24,600 or less, while the highest 10 percent earned more than $115,090. Median annual earnings in May 2006 in the two industries employing the largest number of insurance sales agents were $46,210 for insurance carriers, and $42,950 for agencies, brokerages, and other insurance related activities.

Many independent agents are paid by commission only, whereas sales workers who are employees of an agency or an insurance carrier may be paid in one of three ways: salary only, salary plus commission, or salary plus bonus. In general, commissions are the most common form of compensation, especially for experienced agents. The amount of the commission depends on the type and amount of insurance sold and on whether the transaction is a new policy or a renewal. Bonuses usually are awarded when agents meet their sales goals or when an agency meets its profit goals. Some agents involved with financial planning receive a fee for their services, rather than a commission.

Company-paid benefits to insurance sales agents usually include continuing education, training to qualify for licensing, group insurance plans, office space, and clerical support services. Some companies also may pay for automobile and transportation expenses, attendance at conventions and meetings, promotion and marketing expenses, and retirement plans. Independent agents working for insurance agencies receive fewer benefits, but their commissions may be higher to help them pay for marketing and other expenses.

[mod mom]

22. link?

[Marrah_G]

24. You want me to link to my job?

:crazy:

[mod mom]

25. you state: "I would guess" ...I have google this story and only come up with links

stating AIG execs. Read the posted WaPo article or others at ABC (Brian Ross):

http://abcnews.go.com/Blotter/story?id=5973452&page=1

or politico:

http://www.politico.com/blogs/thecrypt/1008/Waxman_probes_AIGs_postbailout_retreat.html

NOTHING SEEMS TO COLLABORATE YOUR ACCOUNT. So before you pass off a headline as misleading, perhaps you should have some facts. I don't think Henry Waxman, Elijah Cummings and others were exaggerating this story.

[Marrah_G]

27. Personally I don't care if you believe me or not.

http://taxdollars.freedomblogging.com/2008/10/02/after-federal-bailout-aig-fetes-in-style-in-oc/

Halfway down the page it explain that it is a trip for independant agents of and AIG subsidiary.

I knew about the trip 2 years ago. How? Because we are contracted with AIG. We do not submit much business with them, but we are contracted with them .

I've been an administrator for a small life insurance brokerage for a long time now.

I do not go on these trip, they are just for agents and the upper management.

I know how the industry works.

If you prefer to stay outraged over misleading stories then feel free to do so.

I have the facts. You do not.

I tried to educate you about something I happen to know about.

You refuse to listen.

As far as I am concerned this conversation is over.

Enjoy your day.

Edited to clean up language.

[Ignis]

32. Way to get snarky at a request for evidence!

:woohoo:

[pacalo]

15. This is corruption to the most sickening extent.

Their priorities are just criminal. Why are hard-working taxpayers bailing out the executives -- the "deciders" -- who are given packages like this:

Joseph Cassano, the executive in charge of the company's troubled financial products division, received more than $280 million over the last eight years, Waxman said. Even after he was terminated in February as his investments turned sour, the company allowed him to keep up to $34 million in unvested bonuses and put him on a $1 million-a-month retainer. He continues to receive $1 million a month, Waxman said.

:mad:


:nuke:

[Marrah_G]

17. I agree those executives ought to be in jail

Unfortunately we have no real laws against what they did. We need to make those laws.

[loudsue]

21. I wanna know where in the hell are all those DUers who said we HAD to fund this latest

bailout?

This is the SAME FUCKING THING we're going to see with the 700 billion our congress just signed into law. Already, some Lehman dude is getting $400 MILLION, all by himself. There are people being put out on the street, out of their fucking homes, that are paying for these assholes to live like this. It's the taxpayers that are funding these parties, and the taxpayers that are carrying the entire burden.

Is it time for the revolution yet?

[bigtree]

23. this is exactly what I told my wife they'd do

exactly

[Ikonoklast]

28. Lootins' hard work.

Need to get away fer awhile. Hard work, lootin' is.

Thanks for the bailout, suckers!!

http://voices.washingtonpost.com/livecoverage/2008/10/after_bailout_aig_executives_h.html?hpid=topnews

After Bailout, AIG Executives Head to Resort
UPDATED: 11:31 a.m.

Less than a week after the federal government offered an $85 billion bailout to insurance giant AIG, the company held a week-long retreat for its executives at the luxury St. Regis Resort in Monarch Beach, Calif., running up a tab of $440,000, Rep. Henry Waxman (D-Calif.) said today at the the opening of a House committee hearing about the near-failure of the insurance giant.

Showing a photograph of the resort, Waxman said the executives spent $200,000 for rooms, $150,000 for meals and $23,000 for the spa.

"Less than a week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation," Waxman said. "We will ask whether any of this makes sense. "

-snip-

"They were getting their manicures, their pedicures, massages, their facials while the American people were paying their bills," thundered Rep. Elijah E. Cummings (D-Md.), of the executive retreat at the Monarch Resort.

[entanglement]

29. $150,000 dollars for food?

:wow:

[OakCliffDem]

33. Wealth has its privileges