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explaining the mess: Former AIG CEOs Robert Willumstad (left) and Martin Sullivan testify before the House Oversight and Government Reform Committee on Tuesday. pic/afp |
AIG sent its executives to the St Regis resort, south of Los Angeles, even as the company tapped into an $85 billion (Rs 4 lakh crore) loan from the government it needed to stave off bankruptcy. The resort tab included $23,380 (Rs 11 lakh) worth of spa treatments for AIG employees, according to invoices the resort turned over to the House Oversight and Government Reform Committee.
"Average Americans are suffering economically. They're losing their jobs, their homes and their health insurance," the committee's chairman, Henry Waxman, scolded the company during a lengthy opening statement at a hearing on Tuesday.
"Yet less than one week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation."
Former AIG CEO Robert Willumstad, who lost his job a day after the Federal Reserve put up the $85 billion on September 16, said he was not familiar with the conference and would not have gone along with it.
"It seems very inappropriate," Willumstad said.
"Those executives should be fired," Barack Obama said at a debate with John McCain on Tuesday, referring to the retreat participants. Obama also said AIG should return the $440,000 to the Treasury.
AIG was forced last month to accept the $85 billion loan that gives the US the right to an 80 per cent stake in the company.
Sensex slumps below 11,000 mark
Amidst tumbling of stocks in Asia and Europe, the BSE Sensex plunged below 11,000 points in early trade yesterday for the first time in more than two years before rebounding to erase some of its losses but still ending the day lower by 367 points. The Sensex lost 954 points, or nearly 8 per cent, at 10,740.76 points, the lowest since August 2006. It closed at 11,328.36.
