AIG Execs Defend Swanky Junket, Say No Bailout Money Used to Pay For Event

“We used mostly stockholder money,” CEO says

NEW YORK - American International Group executives are defending their decision, made public yesterday by congressional investigators, to spend $440,000 on a conference at a posh California resort just days after the federal government committed $85 billion to bail out the struggling insurance giant.

“We still hadn’t seen so much as one penny of the bailout money by the time we went on that retreat,” said AIG CEO Edward Liddy.  ”We used mostly stockholder money, and some petty cash from our C-suite coffee fund.”

AIG internal documents reveal that the company paid $200,000 for luxury suites, $150,000 for meals, $23,000 in spa charges, and almost $7,000 in golf fees for the week-long conference. Liddy bristled at the suggestion that the expenses were “lavish or extravagant,” noting that AIG executives had endured “a rough couple of weeks” and needed the time to “recharge and strategize before the for the new money rolls in.”

Asked to account for costs not paid by stockholder money or petty cash, Libby explained that suites were financed through low-interest FHA loans, spa fees were charged to Medicare, and golf outings were covered by the company’s farm subsidies.  ”We paid for our meals with food stamps,” Libby added.

Oct 9

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