Throw a party, get a government bailout

I kind of understand why the original bailout of AIG may have been necessary to prevent a global economic collapse (though whether it actually prevented anything remains to be seen. But I simply do not understand why AIG is being rewarded with another $37 billion of taxpayer money because it has "dwindling cash reserves"...

The Federal Reserve Board said Wednesday that it would provide up to $37.8 billion to the embattled insurer the American International Group to help it deal with a rapidly dwindling supply of cash.

The additional assistance is on top of $85 billion in a bridge loan that the Federal Reserve extended to A.I.G. in September, but it will take a different form. A spokesman for A.I.G., Nicholas Ashooh, said the new assistance was intended to keep the company from having to draw down the Fed loan so quickly.

...when it has enough money to throw a big party for its top salespeople:

Here's the tab: $139,375.30 for rooms. $147, 301.71 for "banquets." $1,488 for the Vogue Salon, which features manicures, pedicures and hairstyling. $6,939.09 on golf. $2,949 for tips. $5,016.32 at the Stonehill Tavern. $3,064.71 for in-room dining and the lobby lounge. That's part of the $440,000 bill from a recent weekend bash that an American International Group Inc. subsidiary threw for its top performers at the posh St. Regis resort, on a bluff overlooking the Pacific Ocean. Sounds like they had fun.

Their timing was exquisite. The AIG folks and their guests hit the spa just days after the insurance behemoth grabbed an $85 billion bailout package from U.S. taxpayers. They needed it because AIG piled up net losses of $18.5 billion in the past three quarters on write-downs tied to the collapse of the U.S. subprime mortgage market.

Wheeee! Party on!

Some of the attendees lolled in the 3,100-square-foot presidential suite ($1,600 a night) while the company started to draw down thetaxpayers'billions. The company has already used at least $61 billion of the $85 billion loan, and the Federal Reserve announced Wednesday that it has engineered even more help for the company.

Outgoing CEO Robert Willumstad said at a House committee hearing on Tuesday that he didn't know about the conference and would have "prevented it." At least Willumstad has the decency to turn down his agreed-on $22 million severance package (or that's what's being reported). It will be interesting to see if any under-the-table payments are given. Funny how corporate executive suites are the only place where ignorance is regarded as a legitimate excuse.