Rep. Elijah Cummings is fuming over AIG's recent $343,000 conference in Phoenix.
Yes, this is the same AIG that we, the American taxpayers, bailed out with almost $150 billion. So at the same time AIG is begging for help from the government, it's booking rooms at the Pointe Hilton Squaw Peak resort in Phoenix - complete with a spa, fitness center and other amenities.
Now, of course it would be a little odd if this asset manager event was held at the Motel 6 instead, but there's plenty of firestorm over the fact that the conference was so expensive.
"What bothers me the most is that AIG has come to the Congress and said 'look, we are drowning, we are on our last breath' and Congress bails them out at one point to the tune of $86 billion," plus another $40 billion on Monday, Cummings, a member of the House Oversight and Government Reform Committee, said. "At the same time, they're doing what they've been doing all along, going to these lavish resorts and partying."
AIG, for its, part, said about 90 percent of the bills were paid by sponsors, leaving only about $23,000 to be paid by AIG. AIG CEO Edward Liddy will be on "Larry King" tonight. You can read AIG's entire statement released today after the jump.
"I've got people that live in my district .. that live on $23,000 a year," Cummings said. "They don't get it, they just don't get it."
The Web is full of videos from every-day people across the country peeved about the AIG bailout. A common theme is that these average Joes, if you will, are incredulous at the bailouts and the actions by the financial companies. Here's one:
The fact that by the end of the year, 1.1 million Americans will have run out of their unemployment benefits - and the bad economic news coming out almost daily from Wall Street or Main Street America - should send enough of a message to AIG to tone down the glitter.
"This is like the Titanic going down ... these people are asking us to rescue them ... but they're still playing their music, they're still dancing," he said, taking a swipe a big bonuses that traditionally are the norm on the Street. "I've got people who won't even get a dime at Christmas, won't even have a Christmas."
Local ABC affiliate KNXV-TV in Phoenix reports that AIG made significant efforts to disguise the conference, making sure there were no AIG logos or signs anywhere on the property. An AIG spokesperson said that was to minimize signage costs and to lower the company's profile. One station reporter even tracked down AIG officials at the conference, to get their responses on camera.
A hotel employee told the TV station, "We can't even say the word [AIG]."
Let's give AIG some credit.
After all, it did cancel an appearance by hall of fame football quarterback Terry Bradshaw as a motivational guest speaker, whose services would have commanded at least a $40,000 fee.
Here's the AIG statement released today, attributed to Liddy:
"Recent news reports have grossly mischaracterized an American International Group seminar for 150 independent financial planners held in Phoenix last week. The financial planners are not AIG employees. In addition, the cost to AIG for this event was minimal. More than 90 percent of the costs were paid either by sponsors or by the independent financial planners themselves.
"It is essential for AIG to conduct seminars of this kind to keep independent financial planners abreast of investment products and services including those offered by AIG. The financial planners are responsible for generating almost $200 million in revenue this year for AIG as of September 30th.
"On October 10, I issued a directive to all AIG employees and subsidiaries to reduce expenses and conserve cash, including cancelling all nonessential conferences or meetings, unnecessary travel and excessive overhead. Since then, we have canceled more than 160 events. We conducted a top-to-bottom review of all expenses of the Phoenix meeting in advance and found that it was consistent with my October 10th directive. This conference was approved because it provides the kind of communication we must conduct with the people who sell our products if we are to be successful and repay the U.S. taxpayer.
Liza Porteus Viana has been a political journalist for almost 10 years, both in Washington and New York. She loves politics - the smell of it, the sport of it...more
A Veteran is someone who, at one point in his or her life, wrote a blank check made payable to 'The United States of America' for an amount of 'up to and including my life.' That is Honor, and there are way too many people in this country who no longer understand it.
RATE THIS COMMENT: (0)
dory
4:38PM Nov 11th 2008
amen jvvaccaro...you just summed it all up!...and God bles our servicemen and women...past, presetn, and future!
RATE THIS COMMENT: (0)
BurlJeanD
5:01PM Nov 11th 2008
Time these AIG people go to jail since they have not learned anything. Do they ever work or are they royalty to have fun every other week or less?
RATE THIS COMMENT: (0)
BurlJeanD
5:04PM Nov 11th 2008
AIG IS NOT GIVING THEIR LIFE FOR ANYONE. SELF SERVING FOOLS. TALK ABOUT DICTATORS OF FUN AND GRAFT, THESE PEOPLE LEAD THE PACK WITH HOLLYWOOD STARS.
RATE THIS COMMENT: (0)
BurlJeanD
5:10PM Nov 11th 2008
Congress could do something about this if they were not so interested in their own vacations and lame duck session. Congress is no different than AIG executives. Parasites on this earth and buzzards of humanity. They can suck more blood out of people than a whole summer of mosquitoes. AIG should go under like the Titanic with every single executive with it.
RATE THIS COMMENT: (0)
will
8:05PM Nov 11th 2008
It's shit like this that got Obama elected.
RATE THIS COMMENT: (0)
bc
12:54AM Nov 12th 2008
*veteran day - hahaha. never serve, country last, self first lawyer beat out 22yr veteran 51/2 yr pow, country first, not selfish, patriot. hahahahahahahahahahahahahahahahahaha. *this election paytaxamericans lost stealtaxillegals won. hahaha *veteran iconic image is pow mccain not sailor kissing nurse. the way usa treat mccain teach us not to serve, love, pow, or any thing for usa - just serve yourself. country last, self first, top reward. *civilian national security force? neighbors spying and reporting on neighbors in socialist, military dictatorship, unfree countries around the world. *one last same good old thanksgiving, christmas, newyear before the change/revolution - america will never be the same ever again - changed valentine, nonsame easter, july 5th ... *another word for change is revolution. gunless unarmed citizen means it's resistanceless takeover for military dictatorship from within or out. *no need to wait years for "results" like bush - impeach with first broken promise or mistake. 8yrs of bad bush is already too much no more bad yrs. with obama or anyone - from presidents to mayors. *my xmas wish – the mccains, bushes, palins (only them) get on saturday night live & make me laugh for the last time. after that boycotting media for 4yrs. liberals, democrats, media, hollywood, blacks are no human beings. any year a mccain run he should win. hilary, obama, blacks, hope, change/revolution, economy/money, anyone anything should wait - you gave bush 8 yrs. you can't give a mccain 4? and it would've been the greatest 4 yrs ever too - no one can love america better than "my friends, my fellow americans" or surplus usa like alaska palin. JUST MONEY, JUST 4 YEARS, IN EXCHANGE FOR A SOUL.. it's not "god damn america" - it's allah damn america. cheers.
RATE THIS COMMENT: (0)
Sue Ross
5:02PM Nov 16th 2008
I don't think the government should bail out anyone. It is similar to a case of 'tough love' when you are raising children. There are avenues for companies to take, but they are so used to Party-Hearty and probably way above their means on a personal basis. Let them all take the fall. I am so sorry. Brush off the knees of their jeans and/or $5,000 suits and get on with it. No one learns a lesson, unless they are extremely intelligent, or it is a painful process. More and more of these companies are going to start crying, and there aren't enough American's to support our government throwing money at these companies.