Beleaguered insurance giant American International Group (AIG) canceled more than 160 conferences and events that “are not strictly justified by legitimate business needs,” the firm announced.
The move came after AIG came under fire after top-performing agents were discovered checking into the ritzy St. Regis Resort in Monarch Beach, Calif. Days before, the firm announced it had received an $85 billion loan from the Federal Reserve as part of the recent government bailout plan.
New York Attorney General Andrew Cuomo sent a letter threatening AIG with legal consequences if it failed to “recover improper bonuses and other payments and perks from its former executives.”
Edward M. Liddy, AIG’s CEO, said that the gathering was booked well before the loan and that the St. Regis gathering was standard practice in the industry for top-producing agents for years.
