Good. Period.

ABC News reports:

Battered by outrage over the $440,000 it spent on a luxury retreat less than a week after the federal government loaned it $85 billion dollars, the giant AIG Insurance Company says it has called off plans to hold a second retreat next week at the exclusive Ritz-Carlton Resort in Half Moon Bay, California.

Since I know that our Trader was not planning on attending this second retreat, I think it is reasonable to say that this is a unambiguously positive development. As a part owner of AIG (you know, as an American taxpayer), I believe that the company has made the correct choice. The fact that they had the first one was a little ridiculous. To be quite honest, you AIG execs should be suffering just a little bit if you want the continued financial backing of the country whose economy you screwed up. Just a little bit.

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2 responses to “Good. Period.

  1. polisciafterparty

    Ok, as one still suckling at the corporate teat, i feel I have to defend my employer…wait, no, that doesn’t sound right at all…

    Does AIG have to shape up? Yes. Do some of it’s practices have to be changed/fixed? O yeah. But this event was not what the media is presenting it as. Or at least thats what AIG is telling all of us…

    “Clarification on AIG American General’s Event at the St. Regis Hotel 10.07.08

    The hearing before the U.S. Oversight Committee brought attention to a conference at the St. Regis Hotel from September 24th through the 28th. The conference was held for leading independent distributors with AIG American General and was not an “executive retreat.”

    Conferences like this provide an opportunity for top independent distributors to meet with selected members of insurance company management to learn about ongoing developments in the company and to provide them with product, marketing and operational updates. Given AIG’s current situation, this conference was even more essential to maintaining critical relationships with distributors and the policyholders they represent.

    The vast majority of the attendees at the conference were independent business people and their guests, not AIG employees. In fact, out of over one hundred attendees, there were only 10 AIG American General employees who were there to represent the company and participate in the meetings and discussions. The contract for the conference was arranged in 2007 and the commitment to our distributors was made at that time.

    AIG American General has built its business and reputation by keeping commitments – to customers, employees and distributors. It takes its commitments seriously. AIG American General made a commitment to some key distributors well in advance of the current crisis and despite the current situation and heightened media attention, believed it was important to honor that commitment.” – Straight from the AIG corporate website.

    Is the above true? I tend to believe it is. Does taht make it all better? Absolutely not. While I can understand the justification behind still holding said event, it pains me greatly that the company allowed it to become that large. Why not put a spending cap in play, cut down on the spa treatments, play nine holes of golf instead of 18?? I just don’t get it.

    and yeah…maybe I am just a little bitter that I didn’t get an invite to the retreat…

    -trader

  2. polisciafterparty

    The fact that it was planned in advance and that it was for “key distributors” doesn’t matter much to me.

    It must have taken either a density I’d rather not attribute to the execs at a large insurance firm or a complete disregard for how they look in the eyes of their new shareholders for them to continue on with this ridiculous retreat. I understand that some business practices require spending money on clients (spend money to make money) but the timing of this was either stupid or insensitive if not both.

    They live in a world where 400k is a mere pittance. What they apparently fail to understand is that in the world of most of the new owners of the company, 400k is a lifetime’s earnings. I have no sympathy for them.

    – Legal Eagle

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