Here’s why businesses should be allowed to fail. The federal government just passed the 700 Billion bailout. Meanwhile AIG, who is one of the main beneficiaries of the bailout, sent executives to a nearly half-million dollar spa outing.
AIG sent its executives to the coastal St. Regis resort south of Los Angeles, California, even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy.
The resort tab included $23,380 worth of spa treatments for AIG employees, according to invoices the resort turned over to the House Oversight and Government Reform Committee.
The retreat didn’t include anyone from the financial products division that nearly drove AIG under, but lawmakers still were enraged over thousands of dollars spent on outing for executives of AIG’s main U.S. life insurance subsidiary. [source]
Now we know why AIG was going bankrupt.
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