AIG Executives Party on the Tax Payer - Sounds a lot like ElectriCities management and board

Reprinted with permission from JJ, in Wilson, a member of a local investment group. How true. Sounds so familiar to the big Beach Party Bash and the lack of remorse for that event.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVXfypExIZ9M&refer=home

This article is worth reading. Seems very familiar ... only the NEW, as in the previous CEO is out, gets it a little bit and spoke up with some accountability. Something we have not seen ElectriCities do, board or CEO.

From the article,

“AIG Chief Executive Officer Edward Liddy, who replaced former CEO Robert Willumstad as a condition of the federal loan, today told Treasury Secretary Henry Paulson that the company intends to reevaluate expenses.

‘We understand that our company is now facing very different challenges,’ Liddy wrote in a letter to Paulson. `We owe our employees and the American public new standards and approaches.' “

AIG, Castigated for Resort Event, Plans Another One (Update2)

By Erik Holm and Hugh Son

Oct. 8 (Bloomberg) -- American International Group Inc., castigated by the White House, Congress and Barack Obama for hosting a $440,000 conference days after an $85 billion federal bailout, plans to hold another gathering for brokers next week.

The event, at the Ritz-Carlton in California's Half Moon Bay, aims to ``motivate and educate'' about 150 independent agents who sell AIG coverage to high-end clients, said spokesman Nicholas Ashooh.

White House spokeswoman Dana Perino today called ``despicable'' expenses from the first gathering, a weeklong conference last month at the St. Regis Resort in Monarch Beach. Those costs included $23,000 for spa services, according to Representative Henry Waxman, chairman of the Oversight and Government Reform Committee.

AIG considered buying advertisements to explain its position, only to be told by public relations consultant George Sard that it would be ``a really bad idea.''

``To spend the taxpayer's money on an expensive ad campaign to apologize for how you used taxpayer money leaves you open to further attacks,'' Sard wrote in an e-mail to Ashooh. Sard, chief executive officer of New York-based Sard Verbinnen & Co., said the message was a private e-mail mistakenly sent to Bloomberg and wasn't intended to be a public statement.

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Comments

Good work Jim, Excellent Analogy to AIG

Glad the Wilson folks sent it to you. They are hard at work on the petitions as is Rocky Mount.

It amazes me that ElectriCities' chronicles are mirroring issues at the national level with companies that had their greed overrun them and ruin them. It also amazes me that we are bailing out corporate mismanagement like this AIG example.

I probably will still be amazed if one day I pick up a paper and read that ElectriCities asks for a bailout. I understand from a legislator that the entire state is liable for their debt so if they cannot pay, and that could be reality if rates keep going up and retail customer numbers drop or people cannot pay due to other circumstances, or there are more refinance errors, we could be looking at a state bail out. We are trying to get more information on the parameters of the debt responsibility and all the contracts that connect the organizations and cities. More to come.

It is also frightening to think there could be more to come on ElectriCities' tangle in the financial industry. I am not sure any of us know to what level they are woven into the larger financial crisis.

Al Manning, retiree, native of eastern NC and proud of it, plenty of time to read, research and get annoyed about the lack of accountability in elected leaders these days. Married to a real southern lady and we live with two labs and two airedales who run