Letter sent to Treasury Secretary says event was not for AIG employees
Chairman and chief executive of AIG, Edward Liddy sent a letter today to U.S. Treasury Secretary, Henry Paulson, clarifying the circumstances of a business event held by an AIG subsidiary which was discussed during an October 7, 2008 hearing by the House Committee on Oversight and Government Reform.
In a statement, AIG said: “The event, mischaracterized as an "Executive Retreat," was held by one of AIG's insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve Bank of New York's loan to AIG."
In his letter, Liddy said: "We owe our employees and the American public new standards and approaches,” and that the insurer is "re-evaluating the costs of all aspects of [its] operations in light of the new circumstances in which we are all operating."
Liddy concluded: "AIG is focused on doing what is necessary to address our capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the meantime, our insurance businesses continue to operate normally and satisfy the needs of our policy holders."
