AIG Spends $440,000 After Bailout Loan

As if the financial crisis we are all going through isn't enough to endure, we find out that after AIG received the $85 billion loan given to them by the federal government, money was spent on luxurious amenities. According to a receipt from the St. Regis Hotel, AIG held an 8 day company retreat. Here is the break down of the spending:

1. Hotel Rooms - $139,000
2. Banquets - $147,301
3. Spa Treatments - $23,380
4. Golf - $6,939
5. Room Service, Food, and Cocktails - $9,980

The above total is $442,000. All of this occured about a week after receiving the $85 billion loan. AIG issued a statement last week saying, "This type of gathering is standard practice in the industry and was planned a year advance of the Federal Reserve's loan to AIG. We recognize, however, that even activities that have long been considered standard practice may be perceived negatively. As a result, we are reevaluating various aspects of our operations in light of the new times in which we operate."

Here is an excerpt from the article:

The statement also mentions that the event was held by a AIG subsidiary, not by AIG employees. The attendees were independent life insurance agents who were "top business producers" for AIG. Only about 10% of the attendees were AIG American General employees, and no corporate executives from AIG headquarters attended the meeting, according to the statement. But the question still remains, couldn't these "independent" life insurance agents have scaled their activities back a bit in light of the company's bailout?

These are the kind of inconsideration that played a part of getting us to where we are today and it needs to be mentioned.

Copy of the reciept: Hotel Receipt

Courtesy of: FOX News