This isn’t the first time AIG has used tax dollars to cushion their top officials under Tim Geithner’s watch.
Last year, after the New York Federal Reserve shot AIG a generous infusion of $85 billion, AIG blew $440,00 on spa treatments and golf outings at the St. Regis resort in Los Angeles, prompting outrage about the misuse of tax dollars.
That didn’t stop the New York Fed from sending AIG another $37.8 billion lifeline. At the time, AIG President Edward Liddy promised there would be no bonuses for his executives. Then, news came out at least 2,000 employees were on pace to receive “retention bonuses.”
And, who was chairman of the New York Federal Reserve all this time? Tim Geithner.
He’s been through this with AIG before.