[SES1066]

This is what I understand has happened. First from my experience in the 'Hospitality Industry', you don't do such conferences on a moment's notice, nor can you cancel such without considerable cost. From what I see, there was already a deposit paid of $400k+ for this conference of 8? days length that occurred just days AFTER the Government buy-in. I have heard that the majority of attendees were sales people from a 'profitable' division of AIG. This would make it different to me in that these are the income producers, not the upper executives living off of the 'fat of the land'.

My guess is that the contract stated that there would be a 100% forfeiture of deposit if canceled in less than 15 days before the scheduled event except for 'Acts of God'. The Resort would have already bought the supplies and locked-down the rooms for this event, hence the forfeiture clause. Consequently, whoever was ramrodding this event probably was faced with 'rock and hard place' decision. Leave $400k on the table for nothing, disrupt all travel plans of attendees and loose a chance to acquaint all with the 'new realities' in person OR do it anyway and take the heat.

The real idiocy was the extra charges for golf, liquor and Spa charges. In the light of events, management should have told all to pay for their own and if they were entertaining business guests, put it on their expense accounts. HOWEVER, speaking again from some experience, some of these charges may have been specified in the contract and thus non-discretionary (not atypical in a Resort setting).

I too was grabbed by the headline but upon reflection I think I might have made the same decision. I would have just hoped that I could have explained my actions before the media firestorm. Given the election year, the financial crisis and the proclivities of the media, it looks much like an absolute no-win scenario.

[COUNTrecount]

They should have cancelled the event and either donated it to charity or lost the entire amount.There is NO rationale for this kind of expenditure at this economically devasting time.Where were/are their PR people?

[Eagle of Liberty]

I too was grabbed by the headline but upon reflection I think I might have made the same decision. I would have just hoped that I could have explained my actions before the media firestorm. Given the election year, the financial crisis and the proclivities of the media, it looks much like an absolute no-win scenario.

If we were just days away from a complete financial meltdown:

Government response reaches dramatic new level: U.S. will take 80% stake in nation's largest insurer to prevent global financial chaos.

NEW YORK (CNNMoney.com) -- In an unprecedented move, the Federal Reserve Board is lending as much as $85 billion to rescue crumbling insurer American International Group, officials announced Tuesday evening.

The Fed authorized the Federal Reserve Bank of New York to lend AIG (AIG, Fortune 500) the funds. In return, the federal government will receive a 79.9% stake in the company.

NO PART of AIG should have been able to SPEND $400k! And since the Government, i.e. US PEON CITIZENS, now own 80% of AIG, the Government must have allowed their new employees a little R&R to recover from all of the stress from such a traumatic experience.

To hell with that! Pitchforks and Torches!

[RJS1950]

A non-point. They knew they were going under long before they went to the spa. Their little vacation is just one more indicator of their lack of consideration for the financial disaster they had helped bring about.