A couple of quick thoughts this morning as the Dow falls faster than Sarah Palin's credibility:
Why doesn't this surprise me? Just days after the feds ponied up a cool $85 billion to stave off the creditors, it seems some of the ailing carriers execs needed to retreat and recharge. Seems some of the suits took some time off at a posh California resort to the tune of $443,000. The overworked white collars dropped more than $23,000 of that change at the spa, presumably on much-needed massages and facials.
Now I don't begrudge anyone a little time off. And I certainly don't make a habit out of bashing the "executive lifestyle." But now that I'm part of the company's majority shareholder, I have a problem with it. At best, it's some of the mind-numbingly worst PR I've ever seen. And at worst, it's the tip of the iceberg. Maybe someone should call the accountants. Unless, of course, we want to put our faith in the equally out-of-touch suits on Capitol Hill. I'm sure they'll get to the bottom of everything.
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And speaking of out-of-touch: I know our presidential candidates aren't exactly the guys next door, but can they at least fake it once in a while? Just hours after the Dow closed down — again — by more than 500 points, neither candidate veered away from their talking points at last night's "debate" long enough to talk about what we're all freaked out about. This year, I think it really is the economy. Stupid…
This just in. AIG Chairman and CEO Edward M. Liddy fired off a letter to Treasury Secretary Hank Paulson this morning in response to the so-called "executive junket" that came to light during yesterday's House Committee hearing.
Liddy clarified that an AIG subsidiary hosted the event for "independent life insurance agents, not for AIG employees." The event — planned months earlier — was for top producers, "and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended."
Liddy added that AIG is "reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating."
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