keggerz Posted October 7, 2008 Share Posted October 7, 2008 (edited) http://speaker.house.gov/blog/?p=1541 During today’s Oversight Committee hearing to examine the regulatory mistakes and financial excesses that led to the bailout of AIG the committee learned, among other things, that a week after the government spent $85 billion dollars bailing out AIG, executives went on a retreat at a luxury resort spending $443,343.71. Chairman Waxman asked at the hearing that a letter to Secretary Paulson about these expenditures be inserted into the record. Below is the letter: October 7, 2008 The Honorable Henry M. Paulson, Jr. Secretary U.S. Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 Dear Mr. Secretary: Today the Oversight Committee held a hearing examining the $85 billion government bailout of AIG. The hearing showed that even after the bailout, AIG has spent freely on executive compensation and perquisites. U.S. taxpayers are paying for AIG’s profligate spending. Today’s hearing revealed that shortly after the bailout was signed, executives from AIG’s major U.S. life insurance subsidiary, AIG American General, held a week-long conference at an exclusive resort in California. The company spent nearly half a million dollars in a single week at this resort, including thousands of dollars on catered banquets, golf outings, and visits to the resort’s spa and salon. The hearing also revealed that AIG continues to pay one million dollars a month to an official who helped bring about the company’s downfall. This official, Joseph Cassano, is the former president of AIG’s Financial Products division, the unit that sold the credit default swaps that caused billions in losses for AIG. Mr. Cassano resigned from his position in March 2008. Yet AIG has inexplicably decided to pay Mr. Cassano up to $34 million in unvested bonuses. Even today, it is continuing to employ him as a “consultant” for one million dollars a month. Secretary Paulson, this situation is unfair to taxpayers. AIG received $85 billion in taxpayer money, yet it continues to lavish its executives with undeserved payments and perquisites. We urge you to protect the taxpayers’ money and end this profligate spending. Sincerely, Henry A. Waxman Chairman Elijah E. Cummings Member of Congress Bruce Braley Member of Congress Jackie Speier Member of Congress This entry was posted on Tuesday, October 7th, 2008 at 3:39 pm by Karina and is filed under Subprime Crisis, Consumer Protections, Labor and American Jobs, Oversight. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site. and yeah that should be the correct graemlin since "WE" now basically own AIG Edited October 7, 2008 by keggerz Quote Link to comment Share on other sites More sharing options...
H8tank Posted October 8, 2008 Share Posted October 8, 2008 Maurice Greenberg, a leading Democratic donor, is chairman of the AIG Group, an insurance company that gave Democrats $245,000 Quote Link to comment Share on other sites More sharing options...
keggerz Posted October 8, 2008 Author Share Posted October 8, 2008 H8 I find this rather easy to say since I am a registered Independent... You can post that a Dem is getting money too and that is fine but what I am pissed about is the fact that THE GOVERNMENT bailed these crooks out and they have no problem spending OUR money....its disgusting and EVERYONE in government should be embarrassed for their part in this travesty. Quote Link to comment Share on other sites More sharing options...
yo mama Posted October 8, 2008 Share Posted October 8, 2008 Unf'ing believable. I still can't believe Congress sold us out. Biggest rip off in history. Quote Link to comment Share on other sites More sharing options...
keggerz Posted October 8, 2008 Author Share Posted October 8, 2008 http://www.speaker.gov/blog/?p=1539 (has the invoice summary) Quote Link to comment Share on other sites More sharing options...
darin3 Posted October 8, 2008 Share Posted October 8, 2008 Frickin' disgusting. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted October 8, 2008 Share Posted October 8, 2008 It gets better. The CEO of Lehman Bros has apparently been paid $350 million over the past seven years. He said the "company remuneration committee had worked very hard to make sure the interests of executives, employees and shareholders were properly aligned". Well, that's OK then. Phew! Four days before Lehman filed for bankruptcy, they were planning to dish out more millions in bonuses to the very people who had brought the company to ruin. These people inhabit a bizarro world. Remuneration committees are nothing but a giant circle jerk, incestuously giving each other bonuses and stock options completely out of whack with reality. Quote Link to comment Share on other sites More sharing options...
Puddy Posted October 8, 2008 Share Posted October 8, 2008 It gets better. The CEO of Lehman Bros has apparently been paid $350 million over the past seven years. He said the "company remuneration committee had worked very hard to make sure the interests of executives, employees and shareholders were properly aligned". Well, that's OK then. Phew! Four days before Lehman filed for bankruptcy, they were planning to dish out more millions in bonuses to the very people who had brought the company to ruin. These people inhabit a bizarro world. Remuneration committees are nothing but a giant circle jerk, incestuously giving each other bonuses and stock options completely out of whack with reality. At least these jagoffs weren't bailed out. Quote Link to comment Share on other sites More sharing options...
millerx Posted October 8, 2008 Share Posted October 8, 2008 AAAARRRGGGHHHHH!!!! MOTHER and then when I wore my first dressKERS!!!!! JUST BEETCH SLAP THESE BASTARDS!!!! What kind of f'ing world do these guys live in!?! Besides luxurious... Quote Link to comment Share on other sites More sharing options...
muck Posted October 8, 2008 Share Posted October 8, 2008 (edited) 1) Regarding AIG, the courts will probably be involved to recoup the $$s spent. 2) Their arrogance at AIG is pathetic. 3) AIG should still end up being an extraordinarly profitable investment for the government Edited October 8, 2008 by muck Quote Link to comment Share on other sites More sharing options...
WaterMan Posted October 8, 2008 Share Posted October 8, 2008 Give me some more of that trickle down, mmm. Quote Link to comment Share on other sites More sharing options...
Kid Cid Posted October 8, 2008 Share Posted October 8, 2008 I am simply stunned by this. Quote Link to comment Share on other sites More sharing options...
keggerz Posted October 8, 2008 Author Share Posted October 8, 2008 1) Regarding AIG, the courts will probably be involved to recoup the $$s spent. 2) Their arrogance at AIG is pathetic. 3) AIG should still end up being an extraordinarly profitable investment for the government it will probably cost "US" twice as much to recoup that money Quote Link to comment Share on other sites More sharing options...
Pope Flick Posted October 8, 2008 Share Posted October 8, 2008 This could be very interesting. You know that in this day and age it will only be a mtter of time before the names and addresses of primary residences will begin to trickle out and get into the innernets. Class warfare? I read this and am hot enough to KNOW I'd smash windows at that guys estate if ever given half a chance. I'm sure less controlled people would like to do more, and if they link up, well TimC might go into the torch business. Nauseating. Quote Link to comment Share on other sites More sharing options...
SheikYerbuti Posted October 8, 2008 Share Posted October 8, 2008 I don't see what the problem is. As the old saying goes, you work hard you play hard. Quote Link to comment Share on other sites More sharing options...
piratesownninjas Posted October 8, 2008 Share Posted October 8, 2008 You can post that a Dem is getting money too and that is fine but what I am pissed about is the fact that THE GOVERNMENT bailed these crooks out and they have no problem spending OUR money....its disgusting and EVERYONE in government should be embarrassed for their part in this travesty. Well said. Sucks being an Outsider! Stay gold, Ponyboy. Stay gold. The coolest book ever when I was in junior high... Quote Link to comment Share on other sites More sharing options...
Egret Posted October 8, 2008 Share Posted October 8, 2008 This could be very interesting. You know that in this day and age it will only be a mtter of time before the names and addresses of primary residences will begin to trickle out and get into the innernets. Class warfare? I read this and am hot enough to KNOW I'd smash windows at that guys estate if ever given half a chance. I'm sure less controlled people would like to do more, and if they link up, well TimC might go into the torch business. Nauseating. Like the CEO of Lehman Brothers getting punched in the face at the gym? Quote Link to comment Share on other sites More sharing options...
Pope Flick Posted October 8, 2008 Share Posted October 8, 2008 Like the CEO of Lehman Brothers getting punched in the face at the gym? There yo go - I called it 5 hours early. Look OUT. Quote Link to comment Share on other sites More sharing options...
WaterMan Posted October 8, 2008 Share Posted October 8, 2008 I don't see what the problem is. As the old saying goes, you work hard you play hard. Yeah it is hard work sitting in a chair all day throwing darts at a board. Quote Link to comment Share on other sites More sharing options...
muck Posted October 8, 2008 Share Posted October 8, 2008 12:28PM American Intl issues statement clarifying agent meeting (AIG) 3.30 -0.21 : AIG Chairman and Chief Executive Officer Edward M. Liddy sent a letter today to U.S. Treasury Secretary Henry M. Paulson to clarify the circumstances of a business event held by an AIG subsidiary which was discussed during an October 7, 2008 hearing by the House Committee on Oversight and Government Reform. The event, mischaracterized as an "Executive Retreat," was held by one of AIG's insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve Bank of New York's loan to AIG. In his letter, Mr. Liddy assured Secretary Paulson that AIG now faces very different challenges, and "that we owe our employees and the American public new standards and approaches." Mr. Liddy assured Secretary of the Treasury 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." Mr. Liddy concluded, that "AIG is focused on doing what is necessary to address our capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the meantime, our insurance businesses continue to operate normally and satisfy the needs of our policy holders." Quote Link to comment Share on other sites More sharing options...
darin3 Posted October 8, 2008 Share Posted October 8, 2008 12:28PM American Intl issues statement clarifying agent meeting (AIG) 3.30 -0.21 : AIG Chairman and Chief Executive Officer Edward M. Liddy sent a letter today to U.S. Treasury Secretary Henry M. Paulson to clarify the circumstances of a business event held by an AIG subsidiary which was discussed during an October 7, 2008 hearing by the House Committee on Oversight and Government Reform. The event, mischaracterized as an "Executive Retreat," was held by one of AIG's insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve Bank of New York's loan to AIG. In his letter, Mr. Liddy assured Secretary Paulson that AIG now faces very different challenges, and "that we owe our employees and the American public new standards and approaches." Mr. Liddy assured Secretary of the Treasury 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." Mr. Liddy concluded, that "AIG is focused on doing what is necessary to address our capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the meantime, our insurance businesses continue to operate normally and satisfy the needs of our policy holders." Gee, it didn't occur to them that perhaps canceling this fluffy event would have been a step in the right direction? Idiots. Quote Link to comment Share on other sites More sharing options...
keggerz Posted October 8, 2008 Author Share Posted October 8, 2008 (edited) 12:28PM American Intl issues statement clarifying agent meeting (AIG) 3.30 -0.21 : AIG Chairman and Chief Executive Officer Edward M. Liddy sent a letter today to U.S. Treasury Secretary Henry M. Paulson to clarify the circumstances of a business event held by an AIG subsidiary which was discussed during an October 7, 2008 hearing by the House Committee on Oversight and Government Reform. The event, mischaracterized as an "Executive Retreat," was held by one of AIG's insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve Bank of New York's loan to AIG. In his letter, Mr. Liddy assured Secretary Paulson that AIG now faces very different challenges, and "that we owe our employees and the American public new standards and approaches." Mr. Liddy assured Secretary of the Treasury 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." Mr. Liddy concluded, that "AIG is focused on doing what is necessary to address our capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the meantime, our insurance businesses continue to operate normally and satisfy the needs of our policy holders." ok muck you posted it now give your view on what he said in his letter Edited October 8, 2008 by keggerz Quote Link to comment Share on other sites More sharing options...
muck Posted October 8, 2008 Share Posted October 8, 2008 (edited) The top 5 executives at AIG should offer to cover 1/2 of the tab ($225,000, or $45,000 / ea) and the next highest 25 executives should offer to cover the other 1/2 ($225,000, or $9,000 / ea)...or something like that... Or, maybe the Chairman, CEO, President and the division head responsible for giving the final go-ahead after the governement purchase was announced each cover 25% of the tab... While it smells REALLY bad, I'm not worried about it as it regards the US taxpayer getting repaid and this ending up as a very profitable investment for the US taxpayer. $450,000 is a pimple on AIG's ass. Trust me if I tell you that there are probably other, more eggregious, decisions going on at AIG, FNM and FRE right this very instance via their capital markets activities (or lack thereof). Edited October 8, 2008 by muck Quote Link to comment Share on other sites More sharing options...
yo mama Posted October 8, 2008 Share Posted October 8, 2008 The top 5 executives at AIG should offer to cover 1/2 of the tab ($225,000, or $45,000 / ea) and the next highest 25 executives should offer to cover the other 1/2 ($225,000, or $9,000 / ea)...or something like that... Or, maybe the Chairman, CEO, President and the division head responsible for giving the final go-ahead after the governement purchase was announced each cover 25% of the tab... While it smells REALLY bad, I'm not worried about it as it regards the US taxpayer getting repaid and this ending up as a very profitable investment for the US taxpayer. $450,000 is a pimple on AIG's ass. You know as well as I that its the principal of the matter. The rest of the country is tightening its belt because of the personal greed, excess, and unacceptably risky behavior of executive America. This is merely (overly) dramatic current evidence that, despite AIG having to get bailed out because of those root causes, this tiger ain't gonna change its stripes. Quote Link to comment Share on other sites More sharing options...
keggerz Posted October 8, 2008 Author Share Posted October 8, 2008 You know as well as I that its the principal of the matter. The rest of the country is tightening its belt because of the personal greed, excess, and unacceptably risky behavior of executive America. This is merely (overly) dramatic current evidence that, despite AIG having to get bailed out because of those root causes, this tiger ain't gonna change its stripes. very well said Quote Link to comment Share on other sites More sharing options...
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