AIG’s ‘Thank You’ To The American Taxpayer

What do you think would happen to one of us if we were given billions of dollars of taxpayers’ money and we spent some of it on a lavish and expensive vacation? My guess is that we’d be met at the airport on our return (unless arrested earlier at our vacation site) and hauled off to jail.

Someone needs to explain to me why these AIG executives are still walking around and sleeping in their luxury homes all comfy.

Let’s take a look at some of the chronological events that took place just within the past month or so.

First there was the failing economy and the initial bailout of AIG to the tune of $85 BILLION taxpayer dollars (that our children and grandchildren will be spend their lives trying to pay off).

Fed in AIG rescue – $85B loan

Government response reaches dramatic new level: U.S. will take 80% stake in nation’s largest insurer to prevent global financial chaos.

By Tami Luhby, CNNMoney.com senior writer

Last Updated: September 17, 2008: 10:21 AM EDT

NEW YORK (CNNMoney.com) — In an unprecedented move, the Federal Reserve Board is lending as much as $85 billion to rescue crumbling insurer American International Group, officials announced Tuesday evening.

The Fed authorized the Federal Reserve Bank of New York to lend AIG (AIG, Fortune 500) the funds. In return, the federal government will receive a 79.9% stake in the company.

Officials decided they had to act lest the nation’s largest insurer file bankruptcy. Such a move would roil world markets since AIG (AIG, Fortune 500) has $1.1 trillion in assets and 74 million clients in 130 countries.

Read the FULL STORY here.

OK, we weren’t happy about it, but OK……….we’ll play along. Then about a week later we hear:

AIG, party on!

October 9, 2008

Here’s the tab: $139,375.30 for rooms. $147, 301.71 for “banquets.” $1,488 for the Vogue Salon, which features manicures, pedicures and hairstyling. $6,939.09 on golf. $2,949 for tips. $5,016.32 at the Stonehill Tavern. $3,064.71 for in-room dining and the lobby lounge. That’s part of the $440,000 bill from a recent weekend bash that an American International Group Inc. subsidiary threw for its top performers at the posh St. Regis resort, on a bluff overlooking the Pacific Ocean. Sounds like they had fun.

Their timing was exquisite. The AIG folks and their guests hit the spa just days after the insurance behemoth grabbed an $85 billion bailout package from U.S. taxpayers. They needed it because AIG piled up net losses of $18.5 billion in the past three quarters on write-downs tied to the collapse of the U.S. subprime mortgage market.

Wheeee! Party on!

Some of the attendees lolled in the 3,100-square-foot presidential suite ($1,600 a night) while the company started to draw down the taxpayers’ billions. The company has already used at least $61 billion of the $85 billion loan, and the Federal Reserve announced Wednesday that it has engineered even more help for the company.

Read the FULL STORY here and HERE.

What gets me the most about this is that AIG whined about this ‘conference’ having been arranged and booked before the bailout and that’s why they went ahead with it.

Sorry, I don’t give a ratz azz WHEN it was arranged and booked, the minute you cried broke and asked for a loan, is when this should have been canceled. THAT is what the normal average person would have done……unless said person specifically asked for a loan to go ahead with said plans. I want to know why the AIG executives with their millions aren’t being made to pay this money back immediately.

Apparently they had a second bash also scheduled that after being outed about the first, and hearing the anger of the taxpayers, they cancelled:

AIG cancels 2nd resort conference after criticism

Oct. 9, 2008 09:56 AM
Bloomberg News

American International Group Inc., the insurer that vowed to temper spending after hosting a conference at a California resort amid a federal bailout, said it canceled a similar event planned for next week at a $400-a- night hotel.

The conference, scheduled to be held at the Ritz-Carlton in California’s Half Moon Bay, is being scrapped “after a re- evaluation of the costs under the new circumstances,” said spokesman Joe Norton. The White House, Congress and Barack Obama castigated AIG this week for spending $440,000 last month at the St. Regis resort in Monarch Beach.

AIG, which got an $85 billion loan from the U.S. government last month, may access an additional $37.8 billion from the Federal Reserve Bank of New York to “replenish liquidity,” the Fed said late yesterday. Chief Executive Officer Edward Liddy told Treasury Secretary Henry Paulson yesterday that the company will rethink expenses.

Read the FIRST STORY here.

Well, this was indeed good news. Especially given that they then turned around and asked for another $37.8 BILLION for the taxpayers to shoulder:

A.I.G. to Get Additional $37.8 Billion

By BARRY MEIER and MARY WILLIAMS WALSH

Published: October 8, 2008

The Federal Reserve Board said Wednesday that it would provide up to $37.8 billion to the embattled insurer the American International Group to help it deal with a rapidly dwindling supply of cash.

The additional assistance is on top of $85 billion in a bridge loan that the Federal Reserve extended to A.I.G. in September, but it will take a different form. A spokesman for A.I.G., Nicholas Ashooh, said the new assistance was intended to keep the company from having to draw down the Fed loan so quickly.

Read the FULL STORY here.

Got all this so far? First they cry broke and beg for a loan; then they get the loan on the taxpayers’ backs; then they still go ahead with a conference that ends up costing almost a half million dollars; THEN they come back and beg for even MORE money on the taxpayers’ backs (and I’ll bet you were wondering why your head was pounding and your back hurt weren’t you?)!!

OK, so we’re just trying to stave off a total collapse of our economy, sacrifices need to be made – not sure why it seems to always and only be the taxpayers who actually suffer and sacrifice though.

Now, how about if we took a second expensive and lavish vacation to Europe this time on a second loan of billions of dollars of taxpayers’ money? YOU’VE GOT TO BE KIDDING ME…..RIGHT? I only wish I were:

AIG’s lords and lady of the hunt may find themselves under attack after luxury trip

Wednesday, October 15th 2008, 1:11 AM

Four top AIG executives flipped U.S. taxpayers the bird by spending $86,000 on a partridge hunt at an English country manor as the feds gave their struggling firm billions to stay afloat.

The heedless hunters and their guests traipsed through the fields in tweed knickers, firing at defenseless birds and later washing down pigeon breasts and halibut with “the finest wines taxpayers’ money can buy,” the London-based News of the World newspaper reported.

There were at least three New Yorkers in the group – Jeffrey Malkovsky, a senior director at AIG’s Manhattan office, Hilary James, the general manager of the luxurious Bristol Plaza Hotel, and her pal, John Roberts, who also advises AIG, sources said.

In interviews with undercover reporters, the AIG honchos said they were aware that the markets were crashing back in New York – but were more interested in bagging birds.

“The recession will go on until about 2011 – but the shooting was great today and we are relaxing fine,” AIG honcho Sebastian Preil was quoted as saying.

Read the FULL STORY here.

Talk about showing the people bailing your butt out exactly what you think of them!!!!

So, I believe that someone has some serious explaining to do. I don’t care that this too was planned and booked well before they cried poverty…………the intelligent AND right thing to do would have been to CANCEL THIS PARTY ALSO!!!!!

I’m so angry about this, and you should be too!!!

I want to know why they executives are not being held accountable for this disgusting display of arrogance and disrespect!!

I want to know why the Federal Reserve and Congress are not demanding these executives pay back every penny spent on these two “parties” IMMEDIATELY!!!

I want to know so much that I’m going to start writing to ask why. I’m demanding heads on a platter here. I AM DEMANDING ACCOUNTABILITY!!!

For the Treasury Department (Henry Paulson)

Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

General Information: (202) 622-2000
Fax: (202) 622-6415

Report Fraud, Waste, and Abuse to the Inspector General Hotline

How to File Your Complaint (You may elect anonymity or confidentiality by any of the following methods)

  • Telephone: 1-800-359-3898
  • Facsimile: 202-927-5799
  • Mail:
    Treasury Hotline
    Office of Inspector General
    1500 Pennsylvania Ave., NW
    Washington, D.C. 20220

For the Federal Reserve:

Board Members

Find your Senators and Representatives in Congress HERE. Just click on your state and a page comes up showing BOTH your Senators AND Representatives (one-stop shopping).

It is well past time for “WE THE PEOPLE” to start holding our elected officials accountable for what they do.

It is well past time for “WE THE PEOPLE” to start demanding accurate and honest accounting of what is done with our tax dollars.

It is time for “WE THE PEOPLE” start demanding that government ask our permission before spending money they don’t have that we, our children, our grandchildren and probably our great-grandchildren will be paying.

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~ by swfreedomlover on October 16, 2008.

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