Examining Bailouts BEFORE the Bailout

Former CEO's of bailed out AIG have accepted millions of dollars in severance pay. Let me say that again.

The government bailed out corporate company AIG at the price tag of $85 BILLION dollars and former CEO's have walked away with millions of dollars. Outraged yet? How about this. After the bailout, AIG executives celebrated their bright and shiny future by treating themselves to wining and dining at an elite resort, treating themselves to manucures, pedicures, massages and other spa treatments again costing in the $500,000. Want to know who paid for it? We did. You and I.

When was the last time you took your family to an exclusive spa for a weekend even where money was no object? I can easily say never.

When going before Congress, former CEO Martin Sullivan who resigned from AIG this past summer received 15 million dollars in severance pay. When asked if he would be giving any of that back to the tax payers, his response was no.

Mad now? How about this financial breakdown from USA Today:

"After the bailout of AIG last month, the United States government effectively bought an 80% share in the company. That should have caused a fundamental change, you would think, in how the company was spending funds on compensation, bonuses and benefits. The committee learned that shortly after the bailout went through, executives from AIG's major U.S. life insurance subsidiary, AIG American General, held a week-long conference at an exclusive resort in California.

The resort is called the St. Regis Monarch Beach. ... It's very impressive. This is an exclusive resort. The rooms start, gentlemen, at $425 a night. Some are more than $1,200 a night.
... We contacted the resort where AIG held this week-long event, and we requested copies of AIG's bills. We learned that AIG spent nearly $500,000 in a single week at the -- at this hotel. Now, this was right after the bailout.

... Let me describe some of the -- the charges that -- that the shareholders who are now U.S. taxpayers had to pay. Check this out.

AIG spent $200,000 for hotel rooms, and almost $150,000 for catered banquets. AIG spent -- listen to this one -- $23,000 at the hotel spa and another $1,400 at the salon. They were getting their manicures, their facials, their pedicures and their massages while the American people were -- were footing the bill.

And they spent another $10,000 for -- I don't know what this is -- leisure dining."

When going before Congress, former CEO Martin Sullivan who resigned from AIG this past summer received 15 million dollars in severance pay. When asked if he would be giving any of that back to the tax payers, his response was no.

According to KOKC talk radio, the bailout is now under investigation:

"Congress is looking into the government bailout of American Insurance Group today. New York State Insurance Superintendent Eric Dinallo will appear before the House Committee on Oversight and Government Reform. Dinallo is expected to tell the House committee the bailout was unavoidable. The federal government stepped in after the insurance giant's mortgage business suffered huge losses. However, Dinallo will testify that AIG's insurance business is still strong and profitable. "

Maybe the investigation should have happened PRIOR to the bailout. Stop panicking and do what's right for the country.