Big Insurer’s Spending Habits Disclosed
Robert B. Willumstad, left, and Martin Sullivan, were sworn in Tuesday before testifying before a House hearing on the credit crisis. Mr. Willumstad and Mr. Sullivan are former chief executives of American Insurance Group. The company recently received an $85 billion federal bailout.
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A day after questioning the compensation and spending at the bankrupt Lehman Brothers, lawmakers exploring the causes of the credit crisis were treated on Tuesday to examples of the spending habits at another troubled financial firm.
A week after the insurance giant, the American International Group, received an $85 billion federal bailout, its life insurance subsidiary, AIG General, held a weeklong retreat for its top sales agents at the exclusive St. Regis Resort in Monarch Beach, Calif. Expenses for the week, lawmakers were told, totaled $442,000, including $200,000 for hotel rooms, $150,000 for food and $23,000 in spa charges.
In addition, the former A.I.G. executive who led the London-based division whose implosion is largely blamed for the insurance giant’s downfall, Joseph J. Cassano, continues to receive $1 million a month from the company, on top of the $280 million he received in the last eight years.
Excerpt from
http://www.nytimes.com/2008/10/08/business/economy/08insure.html?_r=1&hp&oref=slogin
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