Posts Tagged ‘Money meltdown’

After The Bailout AIG Bought Themselves A $440,000 “Retreat” At A California Resort [Aig Goes On Vacation]

07 Oct

Now that AIG has been nationalized, some folks are wondering just how their tax dollars are being spent. If you're among them, we have some bad news for you from ABC. They are reporting that papers uncovered by congressional investigators show that "less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California." Ouch.

ABC says that the documents show that the company, yes the company, paid more than $400,000 for a week long retreat at the resort. The bill included $200,000 for rooms, $150,000 for meals and $23,000 in spa charges.

"They're getting their pedicures and their manicures and the American people are paying for that," said Cong. Elijah Cummings (D-MD).

AIG's former CEO told Congress today that AIG was a victim of a "crisis in confidence" and an "unprecedented global catastrophe," but records show that there were serious concerns about the way the company was being managed.

In March, 2008, the Office of Thrift Supervision wrote AIG, "We are concerned that the corporate oversight of AIG Financial Products…lacks critical elements of independence, transparency, and granularity."

Congressman Waxman also said that there was evidence that the former CEO changed the bonus schedule in order to insure that top executives would continue making multi-million dollar salaries, even as their company went broke.

"Mr. Sullivan and the other top executives should have had their bonuses slashed due to poor performance," said Waxman.

Sullivan received a $15 million golden parachute payment when he was let go in June, says ABC.

After Bailout, AIG Execs Head to California Resort [ABC] (Thanks, Melanie !)

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Lehman Brothers CEO Got Punched In The Face [Dick Fuld Is Punched]

07 Oct

Dick "It Wasn't My Fault" Fuld, the CEO of bankrupt investment bank Lehman Brothers, (seen here being heckled after testifying on Capitol Hill) was apparently punched in the face while working out in Lehman gym on the Sunday following the bankruptcy, according to CNBC's Vicki Ward.

Fuld testified before the House Oversight Committee yesterday, blaming everyone but himself for Lehman's collapse, an attitude that prompted Ward to confirm reports that he'd been punched in the face and to side with the attacker:

“From two very senior sources – one incredibly senior source – that he went to the gym after … Lehman was announced as going under. He was on a treadmill with a heart monitor on. Someone was in the corner, pumping iron and he walked over and he knocked him out cold. And frankly after having watched this, I’d have done the same too.”

Are You "With" The Face Puncher?
( polls)

Knock Out: CNBC Confirms Lehman CEO Punched at Gym [Business And Media]
Lehman CEO Fuld Blames Everyone But Not Himself [Gothamist]
(AP Photo/Susan Walsh)

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Woman Buys House For $1.75 On EBay [Money Meltdown]

02 Oct

Joanne Smith from Chicago now owns an abandoned home in Saginaw, Michigan, and she only paid $1.75 for it on eBay. Well, there's also $850 in "back taxes and yard cleanup cost," reports MSNBC. Smith says she hasn't seen the house yet or visited the town, but we're thinking hello summer home! Or maybe it's a good place to put the parents when they retire.

The company that auctioned the home wasn't available for comment, so we'll be curious to see whether they try to squirm out of the deal. Like, oh, maybe saying a bunch of Canadianized killer bees moved in.

"$1.75 eBay bid gets abandoned Michigan home" [] (Thanks to Scott!)
(Photo: MSNBC)

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