After the bailout, AIG execs go on spending spree
- Thread starter Agent 0659
- Start date
what arrogance!!!
its amazing that some people do not have a conscious.....
originally they got a 84 billion $ bailout....& now i heard they got an additional 34 billion $...unbelievable...
its amazing that some people do not have a conscious.....
originally they got a 84 billion $ bailout....& now i heard they got an additional 34 billion $...unbelievable...
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I'm wondering why they are still AIG execs??? They should have been shit canned weeks ago and if not then how about now?
Because they must be good at what they do. They just got another lump some from the taxpayers today. Somewhere in the 40 billion range i think.
CHARLOTTE, N.C. - The Federal Reserve on Wednesday agreed to provide insurance giant American International Group Inc. with a loan of up to $37.8 billion, on top of one made to the troubled company last month.
Under the new program, the Federal Reserve Bank of New York will borrow up to $37.8 billion in investment-grade, fixed income securities from AIG in return for cash collateral. These securities were previously lent by AIG's insurance company subsidiaries to third parties.
The arrangement will help AIG secure funds on an as-needed basis, the New York-based insurer said in a statement.
As of Monday, about $37.2 billion of securities were available for loans under AIG's securities lending program.
On the brink of failure last month, AIG was bailed out when the government offered it an $85 billion loan during the ongoing credit crisis that saw Lehman Brothers Holdings Inc. file for bankruptcy protection and the sale of Merrill Lynch & Co. to Bank of America Corp. In return for the two-year loan, the government received warrants to purchase up to 79.9 percent of AIG.
As of Sept. 30, AIG had drawn $61 billion on the credit facility, of which about $54 billion has gone toward its securities lending and AIG's financial products area. The rest of the money has been for other liquidity needs amid an "unprecedented" freezing of credit markets, Chief Executive Edward Liddy said last week.
Last week, AIG said it would sell off a number of business units to pay off its massive government loan. The company didn't specifically disclose all the assets it would sell or the expected prices from the sales. However, the New York-based insurer said it plans to retain its U.S. property and casualty and foreign general insurance businesses, and also plans to retain an ownership interest in its foreign life insurance operations.
The deal for the additional Fed loan comes as AIG has been castigated by lawmakers and the White House for spending hundreds of thousands of dollars on a posh California retreat just days after getting the federal bailout.
Lawmakers investigating AIG's meltdown said they were enraged that executives of AIG's main U.S. life insurance subsidiary spent $440,000 on the retreat, complete with spa treatments, banquets and golf outings. White House press secretary Dana Perino on Wednesday called the event "despicable."
AIG issued a statement Wednesday saying that the "business event" was planned months before the Sept. 16 bailout and that it was held for top-producing independent life insurance agents, not AIG employees. Of the 100 attendees, only 10 worked for the AIG unit hosting the event, it said.
The insurer said its Chief Executive Edward Liddy sent a letter to Treasury Secretary Henry Paulson "clarifying the circumstances" of the event. In the letter Liddy assured Paulson that AIG is "reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating."
Under the new program, the Federal Reserve Bank of New York will borrow up to $37.8 billion in investment-grade, fixed income securities from AIG in return for cash collateral. These securities were previously lent by AIG's insurance company subsidiaries to third parties.
The arrangement will help AIG secure funds on an as-needed basis, the New York-based insurer said in a statement.
As of Monday, about $37.2 billion of securities were available for loans under AIG's securities lending program.
On the brink of failure last month, AIG was bailed out when the government offered it an $85 billion loan during the ongoing credit crisis that saw Lehman Brothers Holdings Inc. file for bankruptcy protection and the sale of Merrill Lynch & Co. to Bank of America Corp. In return for the two-year loan, the government received warrants to purchase up to 79.9 percent of AIG.
As of Sept. 30, AIG had drawn $61 billion on the credit facility, of which about $54 billion has gone toward its securities lending and AIG's financial products area. The rest of the money has been for other liquidity needs amid an "unprecedented" freezing of credit markets, Chief Executive Edward Liddy said last week.
Last week, AIG said it would sell off a number of business units to pay off its massive government loan. The company didn't specifically disclose all the assets it would sell or the expected prices from the sales. However, the New York-based insurer said it plans to retain its U.S. property and casualty and foreign general insurance businesses, and also plans to retain an ownership interest in its foreign life insurance operations.
The deal for the additional Fed loan comes as AIG has been castigated by lawmakers and the White House for spending hundreds of thousands of dollars on a posh California retreat just days after getting the federal bailout.
Lawmakers investigating AIG's meltdown said they were enraged that executives of AIG's main U.S. life insurance subsidiary spent $440,000 on the retreat, complete with spa treatments, banquets and golf outings. White House press secretary Dana Perino on Wednesday called the event "despicable."
AIG issued a statement Wednesday saying that the "business event" was planned months before the Sept. 16 bailout and that it was held for top-producing independent life insurance agents, not AIG employees. Of the 100 attendees, only 10 worked for the AIG unit hosting the event, it said.
The insurer said its Chief Executive Edward Liddy sent a letter to Treasury Secretary Henry Paulson "clarifying the circumstances" of the event. In the letter Liddy assured Paulson that AIG is "reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating."
so what do they do? go out and buy luxury vacation properties :shrug:
this shit cannot be made up.
:mj07: :mj07: :mj07:
that's like my brother calling me and asking to borrow because he can't pay rent and eat. so he goes on vacation after he gets the money :shrug:
:mj06:
:mj07: :mj07: :142smilie
http://biz.yahoo.com/portfolio/081008/tag_www_portfolio_com_2008_2_14772.html?.v=2
Portfolio.com
A.I.G.: About That Retreat...
Wednesday October 8, 1:57 pm ET
There has been outrage over an American International Group luxury spa retreat that took place less than a week after the Federal Reserve had to rescue the insurance giant with a $85 billion lifeline.
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Even the White House has taken a stand. "It's pretty despicable," White House press secretary Dana Perino said today.
But the company says the event was "mischaracterized" in a House hearing on Tuesday.
The event was held by one of the company's subsidiaries for "independent life insurance agents, not for A.I.G. employees," The company's chief executive, Edward Liddy, said in a letter sent to Treasury Secretary Henry Paulson.
Only 10 A.I.G. employees attended the event; not one was an executive from the parent company's headquarters.
Liddy also noted that the meeting was planned months before the Fed loan.
As Elizabeth Olson reported on Portfolio.com, members of the House Oversight and Government Reform Committee had great sport with the discovery of the weeklong retreat at the exclusive St. Regis Resort at Monarch Beach, California. Rooms at the resort can go for more than $1,000 a night.
The meeting cost about $500,000, including $23,000 on spa services, which prompted Representative Elijah Cummings, Democrat of Maryland, to contend that A.I.G. employees were "getting facials, manicures, and massages and the American people were footing the bill."
Now A.I.G. says it was wrong-footed by lawmakers.
Update: A.I.G. is planning another such event with independent brokers in northern California next week, Bloomberg News reports. About 50 A.I.G. employees are expected to attend that sales event.
Portfolio.com
A.I.G.: About That Retreat...
Wednesday October 8, 1:57 pm ET
There has been outrage over an American International Group luxury spa retreat that took place less than a week after the Federal Reserve had to rescue the insurance giant with a $85 billion lifeline.
ADVERTISEMENT
Even the White House has taken a stand. "It's pretty despicable," White House press secretary Dana Perino said today.
But the company says the event was "mischaracterized" in a House hearing on Tuesday.
The event was held by one of the company's subsidiaries for "independent life insurance agents, not for A.I.G. employees," The company's chief executive, Edward Liddy, said in a letter sent to Treasury Secretary Henry Paulson.
Only 10 A.I.G. employees attended the event; not one was an executive from the parent company's headquarters.
Liddy also noted that the meeting was planned months before the Fed loan.
As Elizabeth Olson reported on Portfolio.com, members of the House Oversight and Government Reform Committee had great sport with the discovery of the weeklong retreat at the exclusive St. Regis Resort at Monarch Beach, California. Rooms at the resort can go for more than $1,000 a night.
The meeting cost about $500,000, including $23,000 on spa services, which prompted Representative Elijah Cummings, Democrat of Maryland, to contend that A.I.G. employees were "getting facials, manicures, and massages and the American people were footing the bill."
Now A.I.G. says it was wrong-footed by lawmakers.
Update: A.I.G. is planning another such event with independent brokers in northern California next week, Bloomberg News reports. About 50 A.I.G. employees are expected to attend that sales event.
I am curious about how much AIG spent to have their name on Manchester United's jerseys. Anyone know?
at least they are putting money back into the economy. I wish they'd just spend the entire 700 billion lavishly and fold the company.
what would really make me sick to the point of wanting to hunt them down and kill them all with my bare hands would be is if they invested the money given to them by the government for future profit.
what would really make me sick to the point of wanting to hunt them down and kill them all with my bare hands would be is if they invested the money given to them by the government for future profit.
