Homepage / Portland News
E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters
Related To Story

AIG Execs Take Spa Vacation After Bailout

Trip Angers Lawmakers

POSTED: 6:23 pm PDT October 7, 2008
UPDATED: 6:56 pm PDT October 7, 2008

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.

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.

The retreat didn't include anyone from the financial products division that nearly drove AIG under, but lawmakers were still enraged over thousands of dollars spent on catered banquets, golf outings and visits to the resort's spa and salon for executives of AIG's main U.S. life insurance subsidiary.

AIG, crippled by huge losses linked to mortgage defaults, was forced last month to accept the $85 billion government loan that gives the U.S. the right to an 80 percent stake in the company.

The information was unveiled during a hearing with lawmakers Tuesday.

During the second Presidential debate Tuesday night, Democrat Barack Obama said the U.S. Treasury should demand the money be returned and top executives be fired. Republican Senator John McCain did not specifically address the spa vacation by AIG employees.

Sponsored Links

Links We Like
Sponsored Content
If you’re worried about STD’s it’s important that you know the telltale signs. Check out the 8 signs that you may have an STD. More

Learn about 7 of the most common skin rashes and everything you need to know to avoid getting them and treating them if you already do. More

The signs of Cancer can sometimes be very subtle. Here's a guide to help you recognize them early. More

A good credit score can save a lot of money the next time you want to make a big purchase. Find out where you stand with a free credit report. More

Don’t be left out. Make the switch to Digital TV.

Your News On FOX 12

Have a news tip? Capture breaking news on camera? FOX 12 wants to hear from you. Click here for details.

Credit Report

See Your Complete Credit Picture. Get your Experian, Equifax & Transunion Credit Score & Report Instantly. View Online for free. More