Money | 03/04/2009 10:45 am
AIG Spending Bailout Cash on PR?

Despite all evidence to the contrary, American International Group really does care about its public image.
The insurance giant, which recently received its fourth round of taxpayer bailout cash, has at least four public-relations firms on its payroll, breakingviews.com reports.
The firms include Kekst and Company, Sard Verbinnen & Co., Hill & Knowlton and Burson-Marsteller. The company also has its own in-house PR team. Specific services and costs were not disclosed.
Of course, it’s common for large corporations to retain PR firms in order to manage complex lines of communications with regulators, legislators and journalists, especially at a time of crisis. What’s less clear is how a group of high-profile spinsters allowed AIG’s top brass to look so bad.
Just weeks after crying poor to Congress and receiving its first $85 billion bailout, AIG executives blew $440,000 on a week-long corporate retreat at the upscale St. Regis Resort in Monarch Beach, CA. The company has since been scolded for another lavish junket in Phoenix, among other perks.
This week, AIG posted a $61.7 billion loss for the fourth quarter of 2008, the largest ever by a U.S. company. CEO Edward Liddy has blamed the company’s woes on former AIG boss Maurice "Hank" Greenberg. In response, Greenberg, who rejected a multimillion-dollar bonus last year but remains AIG’s biggest shareholder, is now suing his former employer for securities fraud.
Taxpayers, take heart — your money’s in good hands.























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FormerJustice Promotes Web-Based Civics Lessons
http://www.ourcourts.org/
This is a sticky issue…if the retreat was for corp exec’s than it is wasteful but if is for promotion, advertising or sales incentives than it may be money well spent to crawl out of the mess.
Also the money spent on those things stimulates the economy for the local economy of the region where it is held!
Some things are not as BLACK and WHITE and they seem and those firms have employees and overhead costs as well.
Educap is a multibillion-dollar student loan charity run by CEO Catherine Reynolds. As CBS News Investigative Correspondent Sharyl Attkisson reported Monday night, Educap is under investigation by the IRS and Congress for alleged abuse of its tax-exempt status because it charges high interest on charitable student loans, and provides lavish perks with millions in compensation for Reynolds and her husband.
CBS News has obtained exclusive details of what may have been the biggest charity perk: use of Educap’s $31 million luxury jet, which costs thousands of dollars an hour to operate.
Investigators say for five years, Reynolds jetted friends, family and luminaries to faraway and exotic destinations that sometimes had little to do with the charity’s mission.
CBS News has learned that high-profile names on the Educap flight list include CIA Director Leon Panetta, former Sens. Tom Daschle and Ted Stevens, former FBI Director William Sessions and Chicago Mayor Richard Daley.
According to flight records, Panetta and Daschle, while not in public office, accompanied Educap’s Catherine Reynolds on flights to private business meetings not related to the charity…And records show Reynolds took Chicago’s Daley and his wife on 58 flights including ones to Turkey, Asia and Sweden. (MM)
well—lets be clear about all of this…aig shouldn’t be given any more of our childrens and grandchildrens cash.
and another thing…
When will Obama ‘get it’ on earmarks?
By Examiner Editorial
- 3/3/09
As the nation faces its most severe recession since 1982, President Barack Obama apparently wants the American people to forget that he promised he would give them earmark reform if they elected him president, even if he had to go “line by line to make sure that we are not spending money unwisely.” It’s time for Obama to keep his promise.
However, administration officials - including Office of Management and Budget director Peter Orszag and White House chief of Staff Rahm Emanuel �" have been calling the earmark-laden spending bill needed to keep the federal government operating through September “last year’s business.” Only in Washington can a spending bill that requires the president’s signature today be yesterday’s business. Although the $410 billion bill contains nearly 8,600 earmarks totaling $7.7 billion, White House officials say President Obama will sign it anyway. Americans, Orszag says, should just “move on.”
But embattled taxpayers will not soon forget this latest illustration of Washington double-talk. Even Time Magazine, whose coverage of Obama’s campaign verged on rapturous, finally had to ask: “Does Obama have a double standard on earmarks?” The fact that the president bragged to a televised joint session of Congress that there were no earmarks in his $787 billion stimulus package, only to remain silent as House Democrats passed a bill with nearly 9,000 earmarks the very next day, answers Time’s question in the affirmative.
Because earmarks bypass the regular legislative process that forces projects to compete for the same dollars, most earmarks tend to be pure political pork. So earmarks in the current spending bill are just as likely to be wasteful as they were when Republicans were busy funding the “Bridge to Nowhere.” For example, there’s $1.8 million to manage swine manure in Iowa, $190,000 for a “Buffalo Bill Historical Center” in Wyoming, $2.2 million to study grape genetics in New York, $175,000 for “façade improvements” on a dilapidated theater in Pennsylvania, $162,000 for cricket control in Utah, and a total of $41.5 million for the presidential libraries of three former Democratic presidents: FDR, JFK and Lyndon Johnson. Taxpayers will be billed for all of it.
No wonder less than two months into the new administration, thousands of angry Americans have already participated in Tea Party protests all around the country. Obama said last week that he “gets it” on executive pay caps. It’s time he gets it on earmarks, too, and veto this ridiculously wasteful omnibus pork bill.
caj p: …once again easier to shoot the messenger.
Are you trying to say that Obama would sign a bill that was put together by the previous administration (the Democratic Congress) six months ago without questioning the contents of it? He has been reversing as much as he can George Bush’s policies, why not at least give a glance to this omnibus bill which he knows is loaded with pork. Doesn’t matter who put it there, he has the veto pen in hand.
caj p: So much unnecessary stuff shoved in there to placate buddies, it needed to be stopped.
Well, I’ll stand pat on this thought until we see what this bill actually accomplishes besides keeping the smells down in Iowa. In any event, Obama has to start showing some leadership. He’s nearly halfway through his first 100 days, we’ll give him a chance to prove he’s more than a rubber stamper.
caj: I be right in saying that??
If Obama starts looking as if he understands the job and is willing to let go of his cronies, the Republicans will not have a chance against him. However, if he continues to scare people, then the 2010 elections might be quite meaningful. Already two and possibly three Democratic Senators are digging in their heels against this pork-filled budget he intends to rubber stamp. These guys just might be listening to their constituents. Right now, many Americans think this thing is out of control and are not willing to sit idly by while they lose everything. This is not the era of the Great Depression where a lot of people did a lot of crying and doing without. The grandchildren of the Great Depression cannot imagine going there.
Marjorie…Good Morning…obama is being pulled both ways now….he either sides with some of the dems that are against the package or goes against princess pelosi and prince reid….what to do…what to do!!!