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AIG gets $37.8 billion more — after St. Regis party
October 8th, 2008, 7:15 pm · 16 Comments · posted by John Gittelsohn
AIG, the insurance company bailed out with $85 billion in taxpayer funds, is getting another $37.8 billion infusion from the Federal Reserve to help cover mounting losses, the AP reports.
As of Sept. 30, AIG had drawn $61 billion on the $85 billion credit facility, of which about $54 billion has gone toward its securities lending and AIG’s financial products area, the AP reports.
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.
The Register’s O.C. Watchdog blog broke the story that employees of an AIG subsidiary — and some of their best customers — who blew more than $440,000 at a retreat at the St. Regis Resort Monarch Beach last month, days after the record $85 billion bailout was approved. AIG has been blasted in Congress for its O.C. bash , with even presidential wannabe Barrack Obama callin to “Fire the scoundrels!”
Liddy wrote to Treasury Secretary Henry Paulson on Wednesday to say that most of the company’s 100 guests at the St. Regis retreat weren’t executives — and they had planned the retreat before the bailout. To see the letter, CLICK HERE.
To see more of the Register’s stories on the St. Regis retreat, CLICK HERE.
Other market meltdown news …
- Tell us, ‘Did media miss the financial crisis?’
- Prez didn’t push for bailout so execs could get facials
- Markets yawn at Fed’s ’scary’ rate cut
- O.C. mortgage rates jump on Fed move
- 77 years ago, Herbert Hoover wrote …
- Subprime’s prime territory
What to do with your money ….
- Credit expert: Fed rate cut won’t help consumers
- O.C. investment experts say don’t buy yet — but get ready
- Yikes! What do I do with my money now?
- Should I bail on my 401(k)? Is my savings safe in my bank?
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Bleeeeech ~ sorry ~ I just threw up……
Republican arrogance at its finest. Paulson, Bush, Bernanke all thieves stealing from the taxpayer. I demand people start going to prison.
This is the most ridiculous thing I have seen all day. WHY do we still give these guys assistance, when we see they continue to mismanage funds? As taxpayers, we should be able to stop the use of (our) money by corporate junket taking fat-cats. They are Nero as Rome burns.
Just think Obama thinks this is a good plan and he hates McCain’s idea of helping the home owners. I say help the home owner stay in there homes then as the prices go back up and they sell the house a good part of the profits go back to the tax payers.
This was actaully tackier than the NRA hosting their annual convention in Colorado after the Columbine shootings. Granted, both were scheduled long before fit hit the shan as they say, but still. No amount of lipstick will make that pig look good.
Where is the next lavish party?
This infuriates me even more. I’ve been following this topic on our blog, savvywallet, and no words can describe how I feel about this. It’s a shame that we give up all our power to the people who only care about their own pockets. It’s peculiar how we issued $700B in 2 weeks and it took months before Hurricane Katrina victims got theirs. You’re right, people should go to prison!
Just another point to make us the laughing stalk of the world. Are any of these “executives” embarresed? I would be. What a bunch of fat baloofs. They are just milking the system until it runs out…..This is why I am moving to New Zealand.
Um…
Dear Henry Paulson,
Please load America $37.8 bn dollars to fund national infrastructure projects. These funds will be utilized to pay the 378,000 American workers an inital years wage at a rate of $100,000.00.
Thank you
The American Worker
This type of arrogance is how these mega buck outfits got in over their heads and the only way they’re gonna comprehend that they are now responsible to the citizens of the USA is for them to serve substantial hard time in general poplulation in a federal penitentiary. Total transparency of all expenditures needs to be the law. Take money from the taxpayers and your company’s records are now a public documents with open access to all. Eff that up and go to jail. No more jokes…..it’s not funny.
this is an outrage……………”the party was planned” well it should have been cancelled……….400,000 dollars…
sure mr ceo and top executives ………live it up while the taxpayers and the countries economy crashes……………
i guess INTEGRITY was not a word used at usc , ucla, yale , harvard and many business schools…………
shame on you ….
Anyone in the insurance business is familiar with these junkets…and they are completely the opposite of what you were led to believe in the press:
1) they are NOT for AIG executives; they are for independent agents.
2) The independent agents are NOT employees of AIG but are, as the name implies, independent agents who receive 1099’s at the end of the year, NOT 1040’s. In all likelihood, the agents represent 5-10 other insurance companies (assuming they are not captive agents, which is very rare in the insurance industry these days).
3) The St. Regis trip is a common incentive type trip that agents compete for: they have to produce a certain amount of business in a year in order to qualify. Virtually every single insurance company in the United States does it.
4) The trip was probably set up 6-12 months ago. It was an OBLIGATION on the part of AIG to provide these agents with the trip.
5) To renege on this obligation that AIG had towards these independent agents would be TANTAMOUNT TO NOT PAYING THEIR ELECTRICITY BILL.
IM GLAD U PEOPLE IN THE OC REGISTER EDITED WHAT I SAID. OTHER WISE THE REAL TRUTH WOULD HAVE COME UP GOOD FOR YOU KEEP EDITING
Dear Treasury Secretary Paulson,
Please deduct the $440,000 spent at the St. Regis from the next $37.8 billion dollar bailout payment.
Sincerely,
U.S. Taxpayer
I think we could use some mob mentality here. Get out the torches and pitch forks and hold a good old fasioned ass whoopin party.
My mortgage is with AIG aka American General Finance. My home is upside down. I had to rent my home out to keep it. A widower and minor 5 children. I am disabled, as is my roomemate; now we live in a travel trailer that i traded for my car.
The American Dream is alive and well again…right.