Executives at American International Group Inc. (AIG) were obviously raked with guilt after running their business into the ground, ruining the lives of thousands of employees, and requiring taxpayers to assume the debt of their poor decisions. They were who distraught, days after the bailout, that they spent $440,000 on a posh California retreat for spas and relaxation. This weekend frolic is the equivalent to the average household annual salary for roughly 20 citizens who will be footing their bill on debt.
The median income per household member in 2006 was $26,036. Yet, the AIG executive felt no shame in taking in a shvitz and a spa at their expense at the pricey St. Regis resort in California. Robert Willumstad, former CEO of AIG, testified before the U.S. House on Tuesday. The executives blamed one another for the disaster.
This included $150,000 for meals, $23,000 bill for massages and other spa services, and $14,000 for hair salon and manicure services. One certainly would not want to pick up a bailout check with last week’s nails. Of course, the executives spent the average for a citizen’s one year salary on their nails — that must make the oft-mentioned “Joe-six-pack” feel just great.
I suppose that one should not be surprised with how stupid executives must be to go to a spa days after a federal rescue when they showed the same lack of judgment in their investments.
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