AIG: We swear, no more parties: The Swamp

Posted October 9, 2008 3:39 PM

by Frank James

Looks like the tongue-lashing from Congress earlier this week has gotten the response from insurance giant AIG that lawmakers were seeking.

Earlier today, AIG announced it was canceling a retreat scheduled for next week for dozens of AIG officials and independent insurance agents at a swank California resort.

That announcement came after members of Congress berated former AIG officials earlier this week for a similar event that occurred a week after the federal government rescued the troubled company with an $85 billion loan of taxpayers money.

Lawmakers were outraged that the company spent more than $400,000 for luxury resort stays that included pedicure, manicures, spas, golf greens fees and bar tabs.

Now, AIG has decided to go further. The parties are over. Here's the announcement they issued this afternoon:

Earlier today, AIG announced an important policy change - one that we wanted to be sure you knew about.

A short time ago, our Chairman and CEO Ed Liddy said that he has ordered the immediate cancellation of all outside meetings, conferences, and recognition events across AIG, except those that are required by law or that are deemed absolutely critical to sustain our ongoing business needs.

Given AIG's commitment to our customers, business partners, regulators, and American taxpayers, coupled with the new and very different challenges our company now faces, we take these responsibilities extremely seriously. Their trust is critical to our success. We recognize the need to be sensitive about all company expenditures.

As we move forward, we will continue our focus our efforts to pay back the $85 billion loan from the Federal Reserve Bank of New York as quickly as possible.