Treasury Dept. Books AIG’s Flight To Carnival!

Yeah baby. The last time the US Government gave AIG a wad of cash infusion, this is what happened:

Less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California, Congressional investigators revealed today.

Well, guess what? Yep, after the sterling performance of AIG the last time, the government has decided to give AIG another shot of vacation incentive:

The Federal Reserve will provide as much as $37.8 billion in additional liquidity to American International Group Inc.’s regulated insurance units after rescuing the company with an $85 billion loan last month.

They’ll be flying down to Rio this time baby! It’s Carnival for the AIG!

UPDATE: Just so you know what kind of style these high flying, hard working, AIG Execs are accustomed to, Ari has the lowdown and dirty:

$200,000 for Rooms
$150,000 for Catered Banquets
$7,000 for Golf
$23,380 for Spa Treatments (These are stressful times for AIG executives, they needed facials.)
$1,400 at the Hotel Salon.

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  1. Teddy Partridge says:

    Cut these A.I.G. jokers off before they take ALL our money!

    Oh, wait…

    (And can Democrats start calling for Paulson to be fired, please?)

  2. sojourner says:

    But, it is just so HARD on those executives to deal with the effects of their actions, you know? They need a way to unwind so they can figure out more ways to get around the rules (or get their money someplace where it is out of reach of the authorities)…

  3. Ishmael says:

    According to Dana Perino, President Bush thought the St. Regis junket “pretty despicable”. How typically Bush, to have stronger words for this waste than torture, doubling of the national debt, disastrous wars, and so many other disasters on his watch.

  4. emptywheel says:

    Man, bmaz, I’ll have to give you hazard pay, what with you having to go look for pictures like that.

    Sorry about that. Thanks for taking one for the team.

  5. Boston1775 says:

    We just had to put four new tires on our son’s 1987 Mercedes.
    We are paying for college.
    We are paying for off campus housing.
    We won’t be sailing next summer.
    We won’t be retiring.
    We’ll die working.

    Yeah baby.

  6. bmaz says:

    Post updated up top with the lowdown and dirty on AIG style when they go to spa:

    $200,000 for Rooms
    $150,000 for Catered Banquets
    $7,000 for Golf
    $23,380 for Spa Treatments (These are stressful times for AIG executives, they needed facials.)
    $1,400 at the Hotel Salon.

    • Valley Girl says:

      Great catch!

      On Wednesday, AIG said the “business event,” hosted by one of its subsidiaries, was for independent life insurance agents.

      Yeah, that’s really reassuring.

    • CTuttle says:

      Heh, that’s still some business event…

      AIG said the “business event,” hosted by one of its subsidiaries, was for independent life insurance agents. It said the event was planned “months before” it received the loan last month, and no AIG executives from headquarters attended.

      They must’ve had power point presentations during their massages and facials…!

      • ThingsComeUndone says:

        They must’ve had power point presentations during their massages and facials…!

        They must’ve had power point presentations during their Hookers and Blow…!
        Fixed it for you:)

      • ThingsComeUndone says:

        Seriously what was so important that they had to spend that much money when they knew they were going broke?
        AIG has known its been trouble for years.

  7. ThingsComeUndone says:

    Business Retreat what ever happened to business meeting with coffee and donuts or...Bagels and Cream Cheese!
    These jokers have to get fired you don’t stiff the landlord on the rent and then walk past him holding a case of beer.
    Real World consequences are what the business community needs.

  8. KayInMaine says:

    An American citizen was interviewed on the street today (must have been near the NYSE) and she said about these CEOs who collect millions/billions, (paraphrasing), “How can they sleep at night? Oh that’s right…on Armani sheets”.

  9. Everythingseemssoneat says:

    I’m not certain that Maurice R. “Hank” Greenberg put the interest of the United States first.

  10. Blub says:

    isn’t the Federal government their new boss and doesn’t an 80% stake come with firing authority?

  11. Hugh says:

    BTW this is how the Fed rather obtusely described the most recent injection of cash:

    Under this program, the New York Fed will borrow up to $37.8 billion in investment-grade, fixed-income securities from AIG in return for cash collateral.

    http://www.federalreserve.gov/…..81008a.htm

    Sort of like borrowing a car from a dealer but collateralizing it with cash.

  12. Mauimom says:

    I want to see the outrage at the even greater amount — $18 million, as I recall — that AIG CEO Hank Greenburg made when he sold AIG stock after the Fed infusion of cash, which of course raised the price of the stock & thus Greenburg’s proceeds.

    Can anyone tell me WHY those who put together this “bail-out” of AIG didn’t demand that executives surrender their stock & stock options before putting in all the taxpayer billions?

    Otherwise, effect is $$$$ from taxpayer pockets to crooks’ wallets.