The AIG bailout plan just got bigger. The US government has scrapped the original $85 billion bailout plan for American International Group (NYSE: AIG) and signed a new $150 billion deal that it hopes will be more likely to save the from going belly up.
Under the terms of the new AIG bailout plan, the company will get lower interest rates and $40 billion of new capital from the government to help ease the impact of four straight quarterly deficits, including a $24.5 billion third-quarter loss.
Days before the new taxpayer-funded AIG bailout plan, the company treated a small group of independent financial planners to a resort stay at the lavish Pointe Hilton Squaw Peak resort in Phoenix (seen above). AIG reportedly spent $343,000 for the resort vacation. This is the second time since September that AIG was involved in a six-figure event at a resort. Is this how AIG intends to spend all of the money included in the $150 billion bailout plan that you paid for?
– luke
