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lavish spending

AIG Partied At The St. Regis Monarch Beach

The House of Representative's Committee on Oversight and Government Reform is holding a hearing on the decline of American International Group (AIG) and they have revealed some stories of lavish spending. In fact, Businessweek reports that just days after the New York Fed gave the company and $85 billion handout, $443,343.71 was spent on a subsidiary's executive retreat at the St. Regis Resort Monarch Beach in Dana Point, California. The bills for the event included nearly $7,000 in golf fees and $23,280 in spa treatments. USA Today quotes Rep. Elijah Cummings, D-Md. who told the committee that AIG spent $200,000 for hotel rooms, and almost $150,000 for catered banquets. Given the current economic crisis this revelation doesn't sit well with many people.

UPDATE: Given the attention to the outrage generated by the story of this retreat, ABC News reports that AIG has canceled a second one which was to be held at the Ritz-Carlton in Half Moon Bay.


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