"AIG ends spending for offsite meetings; CEO's decision comes after political outrage" by Bloomberg News | October 10, 2008
NEW YORK - American International Group Inc., the insurer that pledged to curb spending after hosting a $440,000 gathering following an $85 billion federal bailout, said yesterday it will cancel most of its planned meetings and conferences.
AIG chief executive Edward Liddy "ordered the immediate cancellation of all outside meetings, conferences, and recognition events across AIG, except those that are required by law or that are deemed absolutely critical to sustain our ongoing business needs," spokesman Nick Ashooh said in an e-mail.
Canceled was a conference at the Ritz-Carlton in California's Half Moon Bay "after a reevaluation of the costs under the new circumstances," said spokesman Joe Norton. Senate Finance Committee chairman Max Baucus yesterday demanded more details from the Federal Reserve on AIG's event last month, including "who we can fire."
"This kind of behavior is an insult to taxpayers," the Montana Democrat wrote in a letter to Fed chairman Ben S. Bernanke. He asked for a response by Oct. 23.
Events such as those hosted by AIG to reward top salesmen are common at financial firms. Wachovia Corp., the lender about to be acquired after losing $9.5 billion this year, until yesterday had planned to send 75 top brokers and their spouses on a Greek cruise. The bank canceled it yesterday, citing sliding financial markets, said bank spokesman Jim Griffin. The trip was reported yesterday by the Los Angeles Times. --more--"
Let's just EAT the BASTARDS, America!
