Waxman Probes AIG's Post-bailout Retreat

Rep. Henry Waxman opened a second day of hearings on the financial collapse Tuesday, questioning why the American International Group took executives to an exclusive resort, less than week after the federal government bailed out the struggling company.

“The federal bailout occurred on September 16. Less than one week later, AIG held a week-long retreat for company executives at the exclusive St. Regis Resort in Monarch Beach, California,” said Waxman in his opening statement.

“Invoices provided to the Committee show that AIG paid the resort over $440,000, including…$23,000 in spa charges.”

Three former AIG chief executive officers were scheduled to testify Tuesday before Waxman’s House Oversight and Government Reform Committee. AIG received an $85 billion bailout from the government last month.

However, former CEO Maurice "Hank" Greenberg, the company's largest individual shareholder - canceled his appearance. Greenberg will not testify due to illness, according to Waxman.

“We will probe AIG’s executive compensation arrangements, the leadership of its top officials, and the veracity of their public statements,” Waxman said.

Rep. Chris Shays offered the opening statement for committee Republicans, again questioning why Waxman was holding hearings on AIG but not on mortgage giants Fannie Mae and Freddie Mac.

“We need to keep the toxic twins, Fannie and Freddie, at the center of this hearing,” said Shays. “We can’t wait till Halloween to unmask these two monsters of corporate finance.”

Waxman said a request to hold hearings on Fannie and Freddie would be “pursued” but did not offer any specifics.