AIG was rescued by public funds. It would seem prudent that, with the taxpayers’ dollars supporting the insurance business, restraint would be exercised with every dollar. Unfortunately, this does not seem to be the case:
“Insurance giant AIG was given $152 billion in bailout money by the federal government since nearly collapsing in September. Now the company is planning to take millions of that money and hand it over to employees in a program that sounds a lot like bonuses.”
AIG has been rapped for exorbitant spending at a resort in the midst of this financial crisis. The public criticism of AIG seems to have little impact on this firm. The funds continue to flow. Where is the fiscal responsibility?