http://abcnews.go.com/Blotter/WallStreet/story?id=6223972&page=1 Another AIG Resort "Junket": Top Execs Caught on Tape KNXV Discovers $343,000 Secret Gathering, AIG Signs and Logos Hidden By BRIAN ROSS and JOSEPH RHEE November 10, 2008 Even as the company was pleading the federal government for another $40 billion dollars in loans, AIG sent top executives to a secret gathering at a luxury resort in Phoenix last week. Reporters for abc15.com (KNXV) caught the AIG executives on hidden cameras poolside and leaving the spa at the Pointe Hilton Squaw Peak Resort, despite apparent efforts by the company to disguise its involvement. "AIG made significant efforts to disguise the conference, making sure there were no AIG logos or signs anywhere on the property," KNXV reported. A hotel employee told KNXV reporter Josh Bernstein, "We can't even say the word [AIG]." A company spokesperson, Nick Ashooh, confirmed AIG instructed the hotel to make sure there were no AIG signs or mention of the company by staff. "We're trying to avoid confrontation, keep our profile low," said Ashooh. "Some of our employees have been harassed." http://abcnews.go.com/Blotter/WallStreet/story?id=6223972&page=1
Ahh, that is why they requested more taxpayer money. These crooks are pulling a modern day Ocean's 11. The Den of Thieves.
OK guys... I watched that video and I have to say the reaction is pretty crazy. Considering the amount of people and the nature of the business, perhaps this is a necessary cost of sales to sell investment products? Just being devil's advocate, but this sort of entertaining of clients is considered necessary to move product. If they do $200M net business with clients because of this $343K expense, it makes sense... I read the comments here, and the articles are inline with main street's frustration with high wall street pay, but really that is nothing but class descent (which is another problem altogether). As long as they aren't buying hookers or $10K bottles of wine for their clients, then this is typical. Scratch that: hookers, are great at helping move product. This just looks like a function of sales ...
If your product is worth a d*mn, you don't need excessive fancy marketing to sell it. It sells itself. The best deals of Wall Street are not presented by pretty pitchbooks & lavish presentations. They are simple black & white documents. But hey, if you are ok with AIG execs spending hundreds of thousands in such manner, feel free to donate your earnings to them on top of the tax dollars signed away to them. It's your money.
I agree, but let's be realistic - the entire wall street sales culture functions like this. The alternative is that they all stop selling anything (pre-emptively go bankrupt). What main street investors buy for investments is a function of how many hookers the wholesalers buy for their brokers and 'investment advisors', not any inherent quality in the cointoss they sell. The alternative to these 'bailouts' is a income and corporate tax revenue cut in half, immediate depression, all amongst debt and entitlement obligations we can't afford. The 'AIG bailout' is actually a JPM/C/GS/etc. bailout -- since the required increased CDS collateral goes right to their coffers. To quiet the dissent the only idea I have is 1.5T of spending on energy research, infrastructure, unemployment benefits, etc... along with tax hikes to the rich. This is about class dissent (which is justified, again) -- main street disdains 'cost of sales' ... Either we put up with this or our dollars all become instantly worthless. There is no third choice. Oh yea, and the end game is either a ton of inflation or abject poverty.
Were these 'retreats' marketing, or simply splurging on their best clients? One is active advertising, the other is reward. Very different. I find it common among the fortune 500 to wine and dine both sets of clientele, prospective and existing. However, with the firm in such dire straits as it is and awaiting free money injections, there would be little reason to spend such money on future clients. The 'retreats' were, I conclude, a celebration that their mismanagement has been handily forecasted as guaranteed by the US taxpayer. And receiving a free bailout is certainly reason for a party.
And when Wall Street goes into a downturn, these fancy shmancy meetings stop. Cause the money is not there to pay for them. But for AIG, you and I are paying for them. Bottom line, if you are OK with AIG wasting your money in such a manner to sell its worthless piece of sh*t products (or at least use that an excuse), go donate your earnings to them and get me off the hook, as well as anyone else who is against this bailout nonsense (most of the nation). Some of us have a brain and know how to use it. We don't believe bullsh*t fear mongering rhetoric from scumbags which have been lying to us for decades and participated in orchestrating this financial crisis. If you honestly believe that these robberies aka bailouts are meant to help the population as a whole, you deserve what is coming to you. Putting more and more bandaids on an infected wound does not solve the problem.
Haha.. just found this one one tradethenews... Today 12:19pm American International Group, Inc Responds to misleading news reports - CEO Liddy writes that "Recent news reports have grossly mischaracterized an American International Group seminar for 150 independent financial planners held in Phoenix last week." - Insists that the financial planners are not AIG employees. In addition, the cost to AIG for this event was minimal. More than 90 percent of the costs were paid either by sponsors or by the independent financial planners themselves. - It is essential for AIG to conduct seminars of this kind to keep independent financial planners abreast of investment products and services including those offered by AIG. The financial planners are responsible for generating almost $200M in revenue this year for AIG as of September 30th. Someone give me some props... It is datestamped.
You are preaching to the choir. I am arguing reality though. http://scriabinop23.blogspot.com/2008/09/outrage-at-potential-bailout.html