US: AIG attacked for expensive retreat just days after bail-out
Date: 8 Oct 2008
Martin Sullivan, the former CEO of AIG, came under fire as he testified to Congress as the chairman of the committee flashed images of the luxury hotel that had hosted an executive retreat for the company at a cost of nearly $400,000 just days after the firm's saving from collapse.
AIG has admitted that the retreat took place, although it was said that the event was a reward for a group of self-employed life insurers not for AIG executives. The distinction did little to quell the outrage surrounding the revelation as the figures spent were compared to amounts owing on mortgage payments by people about to lose their homes.
The committee also attacked Mr Sullivan in conjunction with a former witness, Mr Fuid from Lehman Brothers, for both 'refusing to accept any blame for what happened to their companies'.
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In a recent article, the BBC's economics editor Robert Peston highlighted the fact that in 2012 the chances are that the economy - punch drunk as it is from the various flavours of debt crisis it has been pummelled with over the course of the year - will be hit by the collapse of a major bank and / or government.
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