After bailout, AIG sent executives to the spa

Congressional hearings are a joke. They are but public photo ops to show that congress is at least talk about it. But talks are cheap. It's time for actions. It's time to take it the street.  It's time to make all these bastards pay for the financial damages they did to the American people and to the nation as a whole.  Until this is done, there is no faith in our government ability to govern at all. May God has mercy on all of us.

AIG owes all of tax payers the money back that they spent on a spa retreat for their executives after they found out they were getting bail out money. THAT is not what the money was for and in these uncertain times it is a cold slap in the face to every hard working American. Our governemnt needs to punish AIG NOW and set an example for others.

I agree the congressional hearings are a joke.  No tough questions at all a third grader could go in there and ask tougher questions then congress.  The executives are liars and thieves who took advantage of the Government and ultimately tax payers.  They need to be fired and put on trial.  This bailout was a joke the media and Government made us fearful Congress rushed the bailout and now the stupid President says we need to wait to put it into effect wtf.  After we passed the bailout if was supposed to stabalize and make wall street investors less fearful the dow keeps dropping though looks like its working.  Government for the people by the people bull crap Government for the corporation and save the corporation.

Less than a week after the federal government had to bail out American International Group Inc., the company sent executives on a $440,000 retreat to a posh California resort, lawmakers investigating the company's meltdown said Tuesday.

The tab included $23,380 worth of spa treatments for AIG employees at the coastal St. Regis resort south of Los Angeles even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy.

This is not only criminal, but absolutely unbelievable and obscene, and a slap in the face of the American people.  Everyone of these AIG animals should be put in prison, and forced to not only pay back their "fun in the sun at a plush spa last week", but all the money they stole from the American people.

They are arrogant bunch of Assh*l*s, and laughing at the already taxed and maxed American people, and treating us as of we are fools.  What laughs they must have had at the Spa last week on the back of American people.

The panel sharply criticized AIG's former top executives, who cast blame on each other for the company's financial woes.

Well aren't they something.....  We the American people don't give a rats ass that  the panel "criticized" the former AIG top executives.  We want them put in jail for a long time, otherwise, what's the lesson?  What's the deterrent?

It is way past time that we have the heads AND the freedom of these corporate criminals!!!  WE DEMAND JUSTICE!!!!

if we continue to villanize like this, we'll keep falling in the same trap we are in. Do you really think the executives at AIG are to blame for this crisis we are in?

if you get a loan to buy your house, and decide to treat your wife to dinner, does that entitle the bank to slander you?

I'm not making judgements based on this report as you did, but am merely pointing out that we have bigger problems than this lapse of judgement on the part of AIG management. It's a bad PR move, but you, who clearly does not work at AIG, nor probably any large company, and clearly not having the facts...you do not have the right to call yet unidentified ppl criminals

"if you get a loan to buy your house, and decide to treat your wife to dinner, does that entitle the bank to slander you?"

No, but my house loan is not issued by the GOVERNMENT AND PEOPLE OF THE UNITED STATES.  Is that a good enough fact for you?

actually buster, your home loan is fully backed by the US goverment as fannie and freddie are government agencies. I can't believe you don't know that.

Both incidentally were bailed out, a for-real bail out (not loaned money as with AIG) several weeks back.

Get your facts straight dude

and before you embarrass yourself by telling me your loan is with BofA...go read up on debt instruments and learn something about the economy you were unknowingly participating in. Then perhaps you'll understand the real mess we're in

MIke! come on dude, I can't wait to hear what you have to say about this...!!

nick

merely pointing out that we have bigger problems than this lapse of judgement on the part of AIG management. It's a bad PR move, but you, who clearly does not work at AIG, nor probably any large company, and clearly not having the facts...

If the government bails your company out financially (i.e. giving them money -- taxpayer money) because your company is about to go under and the company chooses to go out and immediately spend obscene amounts of money on a spa & golf retreat, that may not be criminal but what other facts are there to gather be fore being outraged at the thought of that... people are losing homes, losing retirement money, pensions... There are FAMILIES in real need that could put 444k to better use... why doesn't the government bail these people out... These fat cat company execs are bullsh*t... some of them are making millions and most are making 6 figs -- PAY FOR YOUR OWN DAMN RETREAT.

chill out man, the govt loaned AIG money so that we'd still have an ecomony tomorrow. Jury is still out whether it's going to work, but one really surefire way of ruining everything is perpetuation a toxic situation.

You have to imagine being one of those guys...some of them were probably killing themselves for 80k a year, also maybe losing their houses, wanting to quit their jobs. Imagine if the CEO steps down? How soon will we get our 85b back? ppl need to back off

nick
I fail to see why you would wan to be an apologist for this behavior... if you gave someone a loan because they were about to go bankrupt or whatever and they immediately went out and blew a big whad on an extravagant party you wouldn't be like WTF??
That is more than just a bad PR move that is irresponsible...

I agree jail time is not what is warranted here but if these execs had to part with some of that dough i bet that would open some eyes...

nick - what a crock.... These guys just helped extort the American tax payer out of $700 Billion, to cover some very risky investments that even their former CEO said were rotten - they ignored auditors that told them they were on thin ice and the Government caved.....  So now they all grab a plane, golf, wine dine and get laid, then come back to work with no remorse over the whole mess they helped precipitate. 

Imagine a steam room, towels wraped round portly executives, big cigars, scantily clad bimbos and lots of back slapping going on - Al Capone couldn't have done it better.....

agreed. I don't really know enough to apologize for them, but I think I know enough to say it wasn't criminal. What I wish everyone could understand is this is a problem with the government, not AIG. There's something wrong with the way we manage debt, home values, credit cards etc.

we need to make sure we start voting for the right folks in all levels of government. that is the most important thing. The execs...will play by the rules you allow them (for the most part)

buttemoxie...seems like you need to get your facts sorted out. I'm going to log off, but the picture you paint is silly. AIG got an 85b loan, you should probably read about it. The bailout...thats a blank check to the govt....

anyhow, tired of the banter. just worked up because the one place we need to focus our anger...is not the execs of AIG. all those folks necks have been on the chopping block for months already

D square you are so right. "OH I GOT A TUMMY ACHE AND I CANT GO BEFORE CONGRESS, HERES A NOTE FROM MY MOMMY!" If these guys dont go to jail and the resort and spa money doesnt get paid back, you can be sure that is all an elaborate DOG AND PONY SHOW by the rich to keep the rich richer.

nick

you seem to be making a lot of money otherwise you wouldnt back these behaviors?!

What the $700 Billion bailout plan did was strain the people "average joes" even more. To put it in simple terms it slammed everyone an additional $2400! Now where are these people already struggling going to come up with that kind of money?! The government has slammed this amount on the people without consent. The bailout plan is already being called "a big failure" from experts in the field. Dont believe me? google it! This is not just bad PR as you state. Heres an example lets say someone comes to you and needs financial help because its a very serious matter you believe them and provide them the money instead of using it for what they told you about they buy a new car ..would you not feel a bit "slapped in the face"!? Im sure you wont understand and im guessing you have the attitude "well as long as i get my money back I could care less" thats not the case here!

Believe it or not but you are also stuck with fitting the bill of roughly $2400. Surprised?!

Now how does that feel to be "paying" for someone else "luxury"!?

And yes i have my facts straight and i have done my "homework".

nick

FYI, I bank through a credit union and most of which do not sell their mortgages to the secondary market.  Like to Fannie or Freddie.  Thankfully, my union is one of these independent institutions.  Credit unions are owned by their members and are not-for-profit.  Therefore, they are not motivated by profit like larger banking institutions and have stricter control on whom they lend money to. 

I understand the mess plenty.  And I know the government has its hand in this mess, thanks to the Clinton Era and the deregulation of mortgage lenders.  This loan to AIG is only a band-aid on an open wound.  Regulation and oversight are the thread and needle to close it, but you are right.  Congress has been slow to enact any new law to help control this and seems more prone to vote for the short term.  There is no way to tell if this loan is going to work and AIG may still fail.

The anger among many Americans is understandable and the general malice felt to CEOs is due to lack of knowledge in the financial field.  But it doesn't help when you read about the removal of one CEO and he ends up getting millions of dollars for a job well failed.  And then this PR stunt where execs are getting a spa treatment does not exactly garner any empathy.  That's why people say why are my tax dollars going to this?  I know they made bad decisions, not criminal ones like Enron.

But the truth is simple.  Everyone is at fault.  The borrowers for not being able to pay these loans, the lenders for giving loans out to high-risk cases, the government for giving the lenders the power to do so.  But we are theoretically a free market society.  If a business fails, then one will eventually rise to take its place and hopefully learn from the mistakes of the past.  I hear it would be very bad if AIG failed, since they have their tentacles in a miryad of financial interests.  "Screwed" as a friend in an investment firm puts it.  It could be a disaster crippling the economy to depression status.  Or it could be over-hyped like Y2K and the clocks just tick on.  Nothing like this has ever happened before so who can say?

I am angry with the government, but that doesn't mean I need to be happy about these execs thinking they deserve a respite from screwing themselves, their corporations, and asking the government for credit with our tax dollars.

I believe that Nick has been bashed enough, but I have to put in my two cents worth as well!  Yes, AIG got a LOAN.  Have they paid any of it back?  Not yet?  But you see, they were ready to go under!  They were going to have to shut down!! They would hurt the financial economy all over the US.  So, the government decided to give them an 85 billion dollar LOAN.  So what do they do?  They take a lot of that money and spend it on golf, spa's, steaks, and other fine luxuries!  You DO NOT DO THAT!  If someone bails you out, you don't flaunt the spending! And I'm sorry, these execs, are not so stressed they need this relaxation!  All it is, is a slap in the face to the American people.  HOW DARE THEY!

It seems like a vareity of combinations that have caused it to go from bad to worse to almost distraught. I think that many people are alarmed at the fact that we have been "asked" to accept a bailout package that many Americans did not want. So the US tax-payer has provided a "loan" to groups like AIG and then we see how these people operate.

It is the same carelessness attitude that has placed our country in some serious trouble. We can also look at the vast amount of social-experiment gone wrong, where  groups like ACORN has been pushing the idea that every American has the right to get a house, regardless if they can pay it back or not. Where did we go from getting a loan if you had a stable job, good credit, etc to get a loan? Now we see that we were given illegal aliens, people on welfare, people who had no credit, and could not pay the monthly payments, a home loan? If you can't buy a home then don't attempt to get a loan. Thanks Freddy and Fannie, we sure are glad for all that hard work ensuring that no real regluations were in place to keep this from occuring.

Then we have the shady back door sales of worthless loans by some of our most powerful and respected firms, consisting of the same deadbeat people who shouldn't have been allowed to purchase a house, those markets had a meltdown and now we really have no clue on how much damage is really out there. No one is really talking and most of the information is probably lost, destroyed, or "misplaced".

The American people can deal with a lot of situations, but the lack of over-sight, common sense, and good judgement, was not happening during the last 20 years. And now we see after a bailout, AIG went on a 440,000 plus retreat? How about we fine those senior officials for $440,000? The CEO of AIG said that he was not going to give back the $15 million dollar golden parachute that he was awarded when the company was going straight into the ground. He seemed okay in the fact that he got his big paycheck and walked away from a train wreck. That is the type of character that bothers the American citizen and tax-payer.

Nick Ricci...You must have been one of the people that went to the spa.  These motherphuckers have money of their own to go to spas.  They could have paid for it out of their own pockets.  We didn't bail them out to go on vacation.  The government needs to call in this loan and let them sink.  Let the big execs that they are paying millions of dollars to bail their a$$ out.  Personally I think they should let them all sink.  They got themselves into this mess, they need to figure out how to fix it.  Would the government bail me out if i needed to catch up on my everyday bills  NO!  But I have to let my tax money go to people who are already richer than sin so they can go to a spa and relax.  When do I get to go to a spa?  Oh, that's right, the government won't pay for me to go to a spa.  Ain't this a B!TCH! BTW, what is the interest on this loan? Should be 50%.

spa treatments are nice...hot stone massage is to die for.

If we gave the American public each a portion of $700 billion dollars, how much would that increase spending, consumer purchase, and investment within this country? I think I could do a better job at investment ideas and purchase selections then giving AIG $85 Billion and then going out to celebrate in style for our stupidity.

This just shows why the government does not need to stick their noses into corporate America and the free market.   They should let all these companies just fail and work things out with on their own.  AIG executives got the government to bail them out so the did not have to work.  How did anyone not see this coming?  Do you really believe the failure of AIG would bring down the maarket and economy?  We were already in this crisis before AIG came into the picture.  I say let them all work things out amongst each other and if they fail, they fail.  The government can enforce tighter regulations, but needs to stop bailing out these companies...Thanks for letting me rant :)

I agree!  Jail time!  And I don't mean the health club type either!

I disagree with "Nick" and some other posters that this person has been bashed enough! Just as others have said, your company is going out of business and then someone steps in and gives you $$ to keep your doors open, you don't go and spend it on vacations, you take a step back and see where the money would be best used. AND these were EXECUTIVES, I am sorry they don't make a piddly $80K. These people make BIG BUCKS. And what AIG did was CRIMINAL - Duh! The article said they deliberately covered up their losses from auditors and stockholders -saying the company was strong, hiding losses. You are not allowed to cover things up - that is against the law, same as Enron! The Congressional hearings are a joke. It is all pomp and circumstance for the American people, but hopefully we are all not that stupid. We need to demand a thorough investigation as to who knew what when and what cover up was going on - and someone needs to go to jail! FACT - PERIOD - End of conversation!

And contrary to one poster, you should not give Americans a portion of the $700BN because most would spend it at Wal-Mart and the only people that benefits is China.

For all the people who think deregulation is good, this one's for dedicated to you.

This is EXACTLY why large co's need regulation.

I think we need to liquidate the assets of all of those executives involved.  Show them how real people live.  Take the money from those assets to put towards what they spent on this little excursion.

We already own China about 500 Billion dollars in loans, trade debt, etc. I just said, why are we going to crack the bank open and give $700 Billion dollars of tax-payer money to give to corporations that were so broke that they were cooking the books to make it look like they were making money instead of losing billions?

Why not give the American tax-payer some of that money back, or at least some kind of break for the complete lack of over-sight and even common sense that seems to trickle up and down top US Corporations? Maybe not all 700 Billion dollars, but if the American people got a portion of that money, you would see the housing foreclosure rate stop for a period of time, maybe enough time to shore the damage before anything else happens. The Government waste money, the Corporations throw it out the window, why not give it to the average American and let them spend it how she/he would want too? I mean at this rate, why bother now? The damage has been done and we are looking at some serious debt that will take several generations to climb out of.

Not like their is going to be an social security or benefits for the next generation.

The golden parachute apparently softens the blow by pillowing feathers on the ground?

I think these failed CEO's are trying to rub this in our face...

Another great example of "trickle down economics"...Ronald Reagan groupies like John McCain love this, as deregulation of the markets allows the mavericks to operate lawlessly and send the burden down to the already vexed and struggling responsible working class.

Fleecing of America continues by the lobbyists and cronies.

I don't really know enough to apologize for them, but I think I know enough to say it wasn't criminal. What I wish everyone could understand is this is a problem with the government, not AIG. There's something wrong with the way we manage debt, home values, credit cards etc.

Nick,

While it may not have been "criminal" of them to take a spa vacation when the rest of the country is in a state of panic, what was criminal was how they hide things that shouldn't have been hidden.  The article did say that none of the executives in their financial services division (where all the problems started) were included in the retreat, they still sent the "executives" only. 

What has people upset is the fact that here this company was, ready to file bankruptcy because of the stupidity and greed of their executives.  Then, the government steps in and uses OUR tax $$ to bail them out and what do they turn around and do?  That's like if I came to you with a sob story asking for a billion dollar loan.  You give me the money and I turn around and take a vacation at the most exclusive resort I can find.  How would you feel?

I think you're just playing devil's advocate, but this was an outrage, you know, I know it and the American People know it.  These are the same people who are crying about feeding their families, etc., etc., while in the meantime, their kids are in private schools, their wives shop for a hobby and they live in penthouse apartments, etc., etc. 

Hey, I may be imagining this whole crisis thing.  The former CEO of AIG said that everyting was fine and the only thing wrong was a accounting rule which forced AIG to report billions of dollars in losses that really didn't exist and CNBC is reporting that all this turmoil is imagined....Those darn politicians must be hyping everything up for political gain.  I can buy that.  What is that unemployment rate?  Is that normal?  I'm pretty sure I can still buy a car if I want to.   

In that case, I'm going back to sleep and hope when I wake up, all this was a bad dream.  Crisis resolved. 

Well said, I just wonder if everyone knows exactly why AIG was bailed out and the other company went under? Could it have anything to do with our head of the U.S. Treasury having over 2million invested with them? 

It truly is a shame. While common middle class Americans are waging a daily war against an economical nightmare, paying bills and slipping further and further into the debt mire, the so called executives of FAILED companies are living the life of Riley. Taking money from the government (ultimately average Dick and Jane) to REPAIR poor business practices, then wasting enough on frivolity to provide the needed traction to those footing the bills is flat out DISGUSTING. It is reckless expenditures like this which flat-lined the company to begin with. Furthermore, actions like these given the circumstances should be treated as THEFT. I and several others like me, are as educated and hard working as the failures employed by AIG. I would love to go on a retreat where all I had to do was spend someone else's money, but since I live in the real world I know that that will never EVER happen. Their executives are obviously not MENSA candidates and should not be treated as such. Certainly they should not be treated better than those who pay to allow them to continually waste. THIS MONEY SHOULD BE REPAID AND OVERSIGHT NEEDS TO BE APPLIED TO EACH AND EVERY MONETARY DECISION THEY MAKE FROM NOW UNTIL THEY HAVE GIVEN US OUR MONEY BACK IN FULL. PERIOD!!

SHAPE UP OR SHIP OUT.

Now, to research moving to Australia.

Why are these people not in jail?  Why do they not have to give there money back??

You could say shame on me all day long if you let me keep the $11 million dollars!!  LOL

Great photo op though!  Say cheese.  : )

All joking aside this really is sad to see more millionaires getting away with crimes again.

We keep voting in the same people year after year and wonder why nothing changes.

Why vote Democrat?  Why vote Republican?  Hmmm which millionaires will you vote for?

NICK;

So did YOU enjoy the Spa?!

Did Nancy Pelousi get to go with her husband?   Way to go, Nancy, screw us again with your stupid super voting!

One word sums up this entire mrotgage mess and conitnued Washington stupidity... GREED.

Banks saw that supply was up in the housing market and decided to put the carrott out in front of people to get financed for a mortgage. The lendors chose not to educate the simple American and instead bam booozled many into taking mortgages they had no business taking out because after all it wasnt the banks problem they sell the mortgages to investors after they collect the initial no renewable closing fees etc. they make a quick buck then move on to the next deal.

Now, why did the "bailout" bill go from 2 pages to hundreds. If anyone thinks there is no pork in the the bill then you are sadly mistaken. Our "boys" in Congress waste billions of dollars doing things that have no business being done with our tax tax dollars. Why should my money from FL be used to fund a "pet" project in Nebraska?

Whether is actually criminal- I will leave that to the legal eagles.  However it certainly feels criminal.  This is not the same as someone with a mortgage taking their family out to dinner if they can afford it.  Whether the bank holding your mortgage was bought out or not, if you did not default on your mortgage this is apples and oranges.  AIG was bailed out by the government.  To take that money and send CEOs to an expensive spa is terribly judgment and the CEO's or AIG should refund the tax payers that money. We all know that will never happen. If the CEO's wanted to go to a spa  they should have paid for it themselves.  The rest of us are busting our bottoms to work. Our tax dollars are funding this bailout and they send the people who most likely had a major hand in this fiasco to a spa?   That is like me taking the company credit card and going to a spa. It is stealing.  The bailout was to fix major mistakes that were made not to give the staff a blank check to go party. 

When I had to get an SBA loan, they wanted to know where I was going to spend the money, and they wanted receipts.  AIG, instead, was handed 85 billion, and our reps "trusted" that they would carry on business as usual...even though business as usual is what got us all into this mess.  Our reps are now saying that oversight is needed, but as I see it, they are just spouting words.  If AIG didn't have enough common sense to not insure those derivatives, why in hell would they be able to exercise good judgment and restraint now? 

I am in total agreement...I caught myself in a debate with friends about this bailout explaining why it is needed etc.  and the dire consequences of not going through with the bailout.  This sort of behavior is exactly why we had to bail these people out for and as soon as the checkbook is back in the black they go right back to frivilous spending and deceitful practices...THESE PEOPLE NEED TO BE ACCOUNTABLE FOR THEIR ACTIONS.  I am a business owner, and I purchase and rehab properties that this credit mess has left behind to run down good neighborhoods...I can't find buyers for finished properties and credit to sustain my business because of these people...no one is bailing me out and if they did I certainly wouldn't waste the opportunity the way these people have.  They need to demand the money back from AIG and let them fold up if this is what they are going to do with funds allocated to save the company

Thomas Jefferson once said:

"I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -- Thomas Jefferson -- The Debate Over The Recharter Of The Bank Bill, (1809)

I agree with everyone.
I couldn't finish reading this story because I was so outraged!!! We should organize groups to go on a protest march on our capitals. State capitals or Washington!!! I would give up a whole Saturday if I could get enough people to gether. I will actually work on this...it wouldn't take much.
This site is going so slow probably because this article is getting so many comments. I will come back here tomorrow and see how many comments were left.

I hate them (AIG).  The spa execs should be forced to resign WITHOUT pay$$$$$$ NO severence packages NOTHING! Because that is pretty much what alot of hardworking Americans have left after AIG's screw up..NOTHING.  They should see what it feels like.

As usual the news media have it all wrong...................The meeting in Calif,  Concerning AIG was not with their executives!! It was a convention that was made up of independent agents that had qualified for  the meeting in the previous year. Home office employees in attendance were less than 10.... No home office executives in attendance. .....................Last time I looked independent agents were not considered employees............That's why they are independent. Insurance Agents have meetings that they qualify for, All companies offer same... Plus the agents in attendance are 1099 for the cost...............Report correctly or don't report at all.  

Couldn't agree more. All these executives who gave each other all these millions of dollars in salary and bonus's should be thrown in JAIL for FRAUD and be forced to make restitution. In my opinion, they were able to do "Legal Embezzling" and should pay it back....every damn penny!!! Maybe this will curb other CEO's from being  greedy.

I AGREE 100% EVERYONE OF THOSE CEO WHO ARE RESPONSABLE FOR THIS ECONOMY BREAK DOWN FOR US TAX PAYER FUTURE SHOULD BE PROSUTED TO THE HIGHEST OF THE LAW AND THROWN IN JAIL.  IT IS MY OPION THAT GEORGE W. BUSH IS TO ALSO TO BLAME TO THIS AS WELL, AND THE GOOD THING ABOUT THIS IS, THAT HE WILL GO DOWN IN HISTORY FOR BEING ONE OF THE WORST PRESIDENTS AND IT WILL BE NOTED THAT HE HAD THE WORST POPULATION AND A BAD ECONOMY AS WELL. AND FOR THE WAMU CEO WHO GOT A $22 MILLION SIGNING BONUS, HE SHOULD GIVE ALL OF THAT TO THE EMPLOYEES WHO JP MORGAN IS GOING LAY TO OFF AND RUIN THEIR LIVES AS WELL. IT IS SAD THAT US TAX PAYERS ARE GONG TO SUFFER ALL BECAUSE OF THOSE GREEDY CEO'S THE GOVERNMENT TO BAIL OUT THOSE CROOKS. LET THEM SUFFER IN JAIL!!!!!!!!11

All CEOs of all financial institutions, whether directly or indirectly involved with our current economic instability, should be held accountable by the laws this nation has set forth and be forced to forfeit/lose all monies/stocks they have acquired over the years and be put in jail if need be.

These so-called "executives" are criminals and have got to be prosecuted for committing the crime of stealing money outright from retirement accounts of United States citizens.  Each and every person in every city and town across this country, who is affected by this criminal assault on his or her livelihood, should demonstrate and demand justice for themselves.  These people belong behind bars and should be forced to repay what they have stolen.      

To Nicki and T .Sanchez who made comments to the effect of 'pay for your own damn retreat'  Uh, most of them did.

I know it sounds much more shocking to present this story as if bailout money was used for spas, but not quite the truth.

The securities & insurance industry hold annual conferences probably arranged over a year in advance and prepaid like AIG's where top producers are recognized and industry continuing education presentations are provided.  These are paid for by the way with monies withheld as a percentage of the individual agent's commissions.  The company would have footed the bill for their home office employees and execs, but not the entire $440,000. 

Basically it takes $150,000 earned in commissions to be a 'top producer', the agent makes 92% payout and AIG makes 8%, BUT for the first $150K the agent only gets 87% of his commission.  The other 5% or $7500 is held to pay for  conference. 

That being said about the false and inflammatory way of reporting this story - the conference should have been cancelled if at all possible (pesky deposits & prepays) if nothing else, to avoid the image and tabloid style exploitation reporting that "AIG" is blowing bailout money getting massages at a 4 star spa.

CEO's did not cause this crisis we are in. They stand the most to lose.

It's things like the inflated housing market (bad values, inflated prices), dollar value, credit markets, and lending practices that brought this on. Decisions made by presidents and congress and the secretive Fed.wake up people...please!!! if you want to reign in these private, dehumanizing tyrannies, what tools do you have? I swear, if anyone on here voted for Reagan, Bush or Bush and is complaining you really need to check yourself. Not that Clinton made every right decision, but Reaganomics is the unfortunate cause of this problem. He meant well, he really did but in the end it really caused problems, huge debts, wars....i mean, we need a new path so lets take it

To make CEO's sound like villains is just an ignorant reaction. You know 1 in 10 people in the states are millionaires? This is based on the fact that they own a falsely priced home, and work at a private multinational tyranny.

Take action where you can actually make changes...and that's in with the Government on every level

AZKat
I did read a follow up to this story today that mentioned this was for independent contractors... the information you just gave was not included... so i would agree that probably a good deal of the outrage is based on an incomplete report but based on what was reported, alot of peoples outrage is valid... even as i type this my local news station is reporting the story as it was released yesterday, that it was AIG execs... I appreciate you trying to set the record straight. Why have no AIG representatives come out to explain this?

Hello!!!!! Regardless of whose money paid for it, in light of the current financial situation all over the world, they should have either postponed the trip or canceled it!  It was in poor taste for them to go ahead with it when people are worried about their jobs, their homes, their children's futures, etc. 

Somebody needs to go to jail !!!!