TakingBackAmerica.org recently contacted AIG’s Board of Directors. An email was addressed to the BOD after the reported “Parties” the company held at taxpayers expense after receiving almost $118 billion in “Bailout” money from the feds.

TakingBackAmerica.org demanded that the Board explain the company’s actions and demanded that the responsible parties be held accountable for the misappropriation of funds. The email pointed out the company’s policies on Corporate Responsibility and asked them how they were showing this with their actions.

As an American taxpayer and now shareholder and speaking for all American taxpayers, TakinBackAmerica.org called them to task.

TakingBackAmerica.org received the following email reply at 8:12 PM, October 29, 2008.

In response to your email addressed to the Board of Directors, one of the events mention in your email was a business event held by an AIG subsidiary and was mischaracterized as an “Executive Retreat”.  The story which was reported widely in the press is not accurate. This event in question was held by AIG’s U.S. life insurance subsidiary for independent life insurance agents—not for AIG employees—who were the top sales producers for the company. The vast majority of the 100 attendees were independent business people and their guests, not AIG employees. 

Another event, "the hunt", was held for customers of the AIG property casualty insurance companies in the U.K. and Europe should have been canceled, and we're sorry that it was not.  The expenses associated with this event will be reimbursed and disciplinary action is being taken against AIG employees who exhibited poor judgment in allowing this event to proceed.

AIG wishes that these events had not happened and regrets that they were not cancelled.

We understand that our company is now facing very different challenges, and that we owe our employees and the American public new standards and approaches.  All further events not essential to the conduct of our business have been canceled, in line with AIG's stricter new corporate expense policy to stop all non-essential conferences, meetings and activities that do not clearly maximize value and customer service given the current conditions.  Furthermore, AIG agreed to establish a Special Governance Committee to institute new expense management controls. These new controls and protections will be designed at the Board level to prevent any future unwarranted expenditures.  We continue to reevaluate the costs of all aspects of our operation in light of the new circumstances in which we are operating.

AIG is focused on rebuilding its businesses, committed to protecting the interests of the U.S. taxpayers and our shareholders, and in repaying the Fed credit facility as expeditiously as possible.

Susan Davidson

Assistant Director

AIG Investor Relations