Thursday, 9 October 2008

Where the bail-out money goes

Here's an article from a British newspaper which highlights just what taxpayers in USA and UK are concerned about: executives of failing companies rewarding themselves with the bail-out money.

"Bosses of an insurance giant bailed out with £48 billion of U.S. taxpayers' money went on a £250,000 retreat to a posh resort less than a week after the rescue, it has been revealed.

American International Group executives racked up a huge tab during the week-long getaway.

The bill included £13,000 worth of spa treatments for AIG employees at the Tuscan-themed St. Regis resort south of Los Angeles.

But U.S. lawmakers investigating the firm's meltdown were still enraged over cash spent on banquets, golf outings and visits to the resort's spa and salon.

'Average Americans are suffering economically. They're losing their jobs, their homes and their health insurance,' Democratic House Oversight Committee Chairman Henry Waxman said.

'Yet less than one week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation.'

Maryland Democrat Elijah Cummings on the House Oversight and Government Reform Committee said: 'They were getting facials, manicures, and massages, while the American people were footing the bill".

OK, a quarter of a million pounds is paltry when billions are bandied about but where was the oversight and control promised when agreeing these bail-out sums?

2 comments:

Yolanda Elizabet said...

This sort of thing happens in my country too where presidents of big companies who have botched their jobs get a golden handshake to the tune of millions and millions of euro's. Why? They made a mess of their jobs so why thank them for that?

The latest news about execs living it up at the expense of the US taxpayer is sickening.

Titania said...

Hello lady luz; I think I missed your blogging. I forgot that you have a new one. I have to change your url on my bloglist.
To your post; my mother used to say:" Crows don't scratch each others eyes out."