Saturday, October 11, 2008

AIG spent $443,343.71 on a junket after being bailed out

I urge you to print and send this letter to the Chairman of the Federal Reserve. I am cutting out Caribou coffee and Chanticlear pizza to make it. They take my tax dollars and spend it on luxury vacations? This can not be allowed to go unpunished.

October 11, 2008

The Honorable Ben S. Bernanke
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW, Room 2046
Washington, DC 20551

Dear Chairman Bernanke:

Within five days of securing an $85 billion loan from the Federal Reserve we learned that American International Group (AIG) hosted an eight-day junket for life insurance sales agents, their friends, and a number of AIG employees. This is an abomination, and a clear picture of how these bailout loans will be treated by the recipients when there is no restrictions and oversight.

The Federal Reserve must take immediate action to reclaim every penny spent by AIG at the St. Regis Monarch Beach Resort, and to stipulate in the terms of each and every loan that abuse of using the taxpayer funded loans will not be tolerated.

To think that AIG could turn to the Federal government in a "desperate need" for funds to continue its very existence and then turn around a few short days later and spend $443,343.71 on spa treatments, golf rounds, ocean view rooms, and surfing lessons is simply appalling. It defies logic, and it demonstrates a lack of common sense – most importantly, it defies the trust of the American taxpayers whose money was used for this bailout.

Wednesday, the Federal Reserve provided AIG and its subsidiaries with access to an additional $37.8 billion, even after it learned of this extravagant spending. The Federal Reserve has now agreed to support AIG with as much as $122.8 billion of American taxpayers money without restriction and without consequence to their greed and irresponsible spending.

My hard-working middle class American family has had to give up many things we enjoy during this time of economic hardship. AIG's executives, workers, representatives, brokers, and agents must also learn to sacrifice. American families like mine are giving up dining out, and coffee shop trips to make it in this economic landscape, AIG must cut back on its extravagant junkets.

Thank you for your attention to this important matter,


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