Unfortunately, it's not obvious that they get it yet. Some idiot - in the highest levels of AIG - even wanted to run advertisements explaining why the junkets made sense. Uh huh. I've been on my fair share of these junkets thanks to business success and yes, they're great fun and great rewards, but when the ship is sinking you have the common sense. Most Americans could care less if AIG fires everyone without severance or bonuses or free trips and starts over from scratch. Until AIG starts to understand that the people who are funding their business lifeline are angry and struggling themselves, they will continue to have problems.
AIG's decision Thursday followed rebukes from Congress, the White House and Democratic presidential nominee Barack Obama. Senate Finance Committee Chairman Max Baucus demanded more details from the Federal Reserve on the canceled Ritz-Carlton event, saying he wanted to know "who we can fire."Gee, ya think? It's also a pretty bad idea to let the former CEO sell off $1 billion in deflated stock while this bailout is underway so perhaps someone can step in there as well.
"This kind of behavior is an insult to taxpayers," the Montana Democrat wrote in a letter to Fed Chairman Ben S. Bernanke. Baucus asked for a response by Oct. 23.
"I cannot fathom how in the same day -- the very same day -- that AIG asked the government for another $37.8-billion loan, the company would even consider moving forward with plans to host another large conference at another luxury resort," said Rep. Elijah E. Cummings, a Maryland Democrat.
The event next week aimed to "motivate and educate" about 150 independent agents who sell AIG coverage to high-end clients, AIG spokesman Nicholas Ashooh said Wednesday.
AIG decided against it a day after striking an agreement that would enable it to access an additional $37.8 billion from the Federal Reserve Bank of New York. Liddy, the CEO, told Treasury Secretary Henry M. Paulson on Wednesday that the company would rethink expenses.
AIG considered buying advertisements to explain its position, only to be told by its public relations consultant, George Sard, that it would be "a really bad idea."
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