AIG staff on lavish hunting trip after bailout
First there was the $4,40,000 American Insurance Group Inc spent entertaining executives days after receiving an $85 billion lifeline from the Federal Reserve, now it's $86,000 for a hunting trip in England as the faltering company reaped another $37.8 billion in taxpayer funded loans.business Updated: Oct 16, 2008 21:06 IST
First there was the $4,40,000 American Insurance Group Inc spent entertaining executives days after receiving an $85 billion lifeline from the Federal Reserve, now it's $86,000 for a hunting trip in England as the faltering company reaped another $37.8 billion in taxpayer funded loans. News of the hunting trip emerged on Wednesday as New York Attorney General Andrew Cuomo ordered AIG to do away with golden parachutes for executives, golf outings and parties while taking government money to stay afloat.
“Even after the taxpayer-funded bailout of AIG, the company paid hundreds of thousands of dollars for luxurious retreats for its executives, including an overseas hunting party and a golf outing,” Cuomo wrote in a letter to the New York-based insurer. He said the spending could be “fraudulent conveyances” under a state law regarding debtors and creditors and noted that beyond those excesses millions were paid to executives who were running AIG as it faced dissolution with government help.
Company officials said the hunting trip in the English countryside was an annual event for customers that had been planned months before the bailout.
The company pledged — as it did following the September trip — to do everything possible to end such extravagances. They declined to say which AIG executives attended. “This was an annual event for customers of the AIG property casualty insurance companies in the UK and Europe, and planned months before the Federal Reserve Bank of New York’s loan to AIG,” company spokesman Peter Tulupman said.
First Published: Oct 16, 2008 21:04 IST