AIG Cancels Another Resort Meeting After Criticism

[Newsjock]

Source: Bloomberg

American International Group Inc., the insurer that vowed to temper spending after hosting a conference at a California resort amid a federal bailout, scrapped a similar event planned for next week at a $400-a-night hotel.

The conference, scheduled to be held at the Ritz-Carlton in California's Half Moon Bay, was canceled today ``after a re- evaluation of the costs under the new circumstances,'' said spokesman Joe Norton. The White House, Congress and Barack Obama castigated AIG this week for spending $440,000 last month at the St. Regis resort in Monarch Beach.

AIG, which got an $85 billion loan from the U.S. government last month, may access an additional $37.8 billion from the Federal Reserve Bank of New York to ``replenish liquidity,'' the Fed said late yesterday. Chief Executive Officer Edward Liddy told Treasury Secretary Henry Paulson yesterday that the company will rethink expenses.

``I cannot fathom how in the same day -- the very same day that AIG asked the government for another $37.8 billion loan, the company would even consider moving forward with plans to host another large conference at another luxury resort,'' said Representative Elijah Cummings, a Maryland Democrat who criticized AIG earlier this week for the cost of the St. Regis conference.


Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aCsrY_UKxczs&refer=us

[jkshaw]

1. All this proves is that they're not completely deaf.

[Teaser]

2. They damn well better...seeing as I'm part owner of AIG

and I was not invited to any of these soirees.

[Submariner]

12. Tell your investment owners to meet in an office conference room

and tele-conference in the outlying offices. It's cheaper than a resort with massages, but you'll get bigger dividends....maybe.

[Teaser]

21. You're a part owner too...tell them yourself!

.

[Phred42]

3. Gee Hard Times all around 'eh?

[Sabriel]

4. I'm guessing they'll find a way to do it quietly

I'm sure they'll go ahead with business as usual.

[OhioChick]

5. They'll still party....

Just under the radar.

[PA Democrat]

6. Good for Rep. Cummings for going public with this. I heard him speaking about it

yesterday when he appeared on Hardball. Apparently some of these executives need to be shamed into decent behavior.

[Faygo Kid]

7. You might say they "bailed out," eh?

:eyes:

[Endangered Specie]

8. I was thinking "pulled out"

;)

[ReadTomPaine]

9. This is going to upset some here who view junkets to luxury resorts as a god-given right...

I want my damn champagne and I want it NOW or I'll sue you!

[Sewsojm]

10. They'll just have a $500,000.00 Bar-B-Cue instead.

[notadmblnd]

11. What's wrong with the damn telephone?

they need a damn conference, let em do it via tele-conference like the rest of us slugs.

[TankLV]

13. Gee - I wonder if our own newly joined WriteDown will file suit on behalf of all those "poor" execs?

He is SOOO "concerned" with employment "contracts" and "agreements" - at least only with those CRIMINALS at the TOP of the food chain...

[closeupready]

17. Yeah - right?

:rofl: Nail, meet hammer. :D

[redqueen]

18. Hah.

[Limelight]

14. So they nixed one....

They probably got 10 more just like it still on the schedule.:grr:

[CatholicEdHead]

15. If they were smart, they can find a good Motel 6 nearby to host this

Or maybe a Super 8.

[truthisfreedom]

16. Maybe if they'd been meeting in conference rooms instead of poolside, their decisions would have

kept their company AND our economy afloat.

[lib2DaBone]

19. Gee.. $500K party...Ritz-Carlton Hotel... things are tough.....

If they run out of money.. all they have to do is call Nancy Pelosi or Harry Reid....

[RobertSeattle]

20. I'm always at the big corporation "Retreats"

Totally tax deductable freebies for the execs. What a life.

[sparkleon]

22. Perks

I think it is crazy the way our Government rewards corporations regardless of whether they are top notch or not. I think the US Treasury should demand those top high performance people pay back the cost of the retreat per person. Only then will the perks stop.