After receiving a newly enlarged $150 billion rescue package on Monday, AIG was once again caught for superfluous corporate spending in the days prior to their third bailout. Similar to the shenanigans pulled at a California resort following the issuance of their second government check, AIG entertained top independent agents at the posh Pointe Hilton Squaw Peak resort in Phoenix November 5th – 7th. The conference cost over $340,000.
Although the insurence company claims that the majority of the trip was covered by “sponsors”, AIG’s biggest sponsor – the government – is less than pleased to see the drowning insurer unwilling to exercise financial restraint. Newly appointed CEO Edward Liddy has already been asked to step down by Elijah Cummings, Maryland congressman and senior member of the House Committee on Oversight and Government Reform, who says that Liddy’s careless actions have wasted taxpayer money.
AIG’s decisions leading up to the bailout and after receiving government assistance represent the moral disintegration of corporate America. It is unfortunate that we have to question the judgment and business practices of companies that once were viewed as pillars in our economy, but the meltdown on Wall Street is evidence that corruption does not make for a sturdy foundation.
As disheartening as these economic times may be, we have to move forward and learn from the mistakes made. Proper training in the corporate world is essential in order to correct the abuses that transformed U.S. business. Invesments should be made in programs that teach workplace principles to employees, bringing the focus back to individual responsibility. With the resurgence of skill and corporate training methods, ethics will be restored to the U.S. marketplace.