Corporations on Welfare Must Trim Expenses

When I found out the other day that no sooner had insurance giant AIG accepted a huge bailout from the taxpayers–that’s us–that they had spent $400,000 on a posh weeklong retreat at the St. Regis Monarch Beach, a very expensive resort, including a $10,000 tab at the bar, and $24,400 on spa and salon services, I was too steamed to even blog about it. I knew that if I let my fingers loose on this one, I’d probably say something I’d regret. So I kept my mouth shut.

Today, I found out that they’d planned to have a similar retreat a week later, at the Ritz-Carlton in Half Moon Bay, California, but this one they canceled–not because they’ve come to their senses, but because of the very understandable public backlash about the first retreat. Meanwhile, they’ve got their hand at the public trough, asking for another $37.8 billion. And they have the nerve to complain about cancellation fees!

“We’ll certainly lose some money in cancellation fees, but it’s just beyond the point of trying to conduct these meetings given the uncertainty that’s taking place.”

Yes, there are usually cancellation fees when you cancel a large event at the last minute. These things are booked months in advance and the hotels can’t resell all that space on that kind of timeframe. But still–you pay the fees, grit your teeth, and at least pretend that you care enough about the taxpayers who are bailing you out that you don’t go on expensive and totally unnecessary junkets. And you sure as anything don’t stick the public with your bills at the bars and spas; those should be borne by the individuals consuming the services.

Rooms at these hotels range from $400 to $1200 per night. The government should demand repayment of every penny spent at the St. Regis on this pig-in-a-poke. Can you imagine what Limbaugh and the rest would say if they found a “welfare queen” enjoying this kind of high life at government expense? Well, when corporate executives are the ones getting welfare, the standards should be similar.

You want to run up big bills to reward your high performers? Fine–but don’t ask us to pay for it.