Search:
StoriesVideos
Home News 

Story

AIG Execs Take Spa Vacation After Bailout

Trip Angers Lawmakers

Tuesday, 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.

More Headlines

Strange News Photos

From brilliant to bizarre, this 99-photo slideshow captures a variety of strange news. Photos are added often, so prepare to be shocked and amused. Take A Look!

Submit News Video And Photos

Send Us Your Video And Photos!
If you're there when news happens, Eyewitness News wants to know! Send us your video or photographs of news events in the Central Florida area. Use your computer or cell phone, attach them to an email and send it to news@wftv.com.

By submitting photos, you agree to the terms of our license agreeement. READ THE AGREEMENT

Please note the following file requirements:
Video: No larger than 2 MB, mpg, .avi, 3GP
Photos: .Jpg or .Gif, No Larger than 500k

Eyewitness News Tipline
If you see news happening, give us a call. Or send a text to by going to News Tips on WFTV.com on your web-enabled cell phone. You can also email us at news@wftv.com.