Homepage / Money

AIG Execs Take Spa Vacation After Bailout

Trip Angers Lawmakers

POSTED: 9:23 pm EDT October 7, 2008
UPDATED: 9:56 pm EDT 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.

Links We Like

Sponsored Content
If you have aspirations of becoming a millionaire, check out these five habits that may be worth emulating. More

To get the most out of your remodel, check out these 10 home updates that have the biggest payoffs when it comes time to sell your home. More

Do you have concerns about the recommended vaccines for your child? Get the facts to clear up any confusion about vaccinations. More

If you're looking to save on your next new vehicle, a low sticker price is just one aspect. Consider all the costs and make the right decision. More

Credit Report

560? 675? 720? The average US Credit Score is 692. What is your score? See it online for FREE! More

Best Local Rates On...



LocalNational

30 Yr Fixed Mortgage5.02%5.02%

48 Mo New Car Loan6.59%6.79%

$30k Home Eq Loan8.73%8.33%

6 Month CD1.10%1.13%
Help! I don't understand!
More Rates


Sponsored Links

Stock Quotes

Get a Quote
Enter Symbol


Smart Savings

Do you catch yourself counting every penny these days? Find money-saving ideas big and small in our Smart Savings guide. More


E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters