Goverment oversight? There was none before, why would anyone think there will be any in the future? This is why one never rewards bad behavior as there is never a learning curve as to what was done wrong. Throwing $’s at problems never solves the root cause.
Think it was hard to stomach the $700 + billion bailout of greedy corporations when the law was passed by Congress? The following actions by AIG was just a kick in the gut to “We the People.” What else would any one expect from a corporation that was just rewarded for bad behavior? Does any one thing AIG learned a lesson by their risky and failed business practices?
Following the corporate gift, the corporate welfare present that the American tax payers gave companies last week in the socialist bailout plan, AIG decides to show their appreciation to “WE THE PEOPLE” by livin’ la vita loca and spending $440,000 on a posh California retreat for its executives, complete with spa treatments, banquets and golf outings.
AIG sent its executives to the coastal St. Regis resort south of Los Angeles even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy. The resort tab included $23,380 worth of spa treatments for AIG employees, according to invoices the resort turned over to the House Oversight and Government Reform Committee.
The retreat didn’t include anyone from the financial products division that nearly drove AIG under, but lawmakers still were enraged over thousands of dollars spent on outing for executives of AIG’s main U.S. life insurance subsidiary.
This is precisely the reason why you do not bail out companies that earned the right to go belly up. Oversight? Before the Federal Government can even begin to have oversight with companies, out of control corporations like AIG have to have some form of responsibility.