AIG halts lobbying after government takeover

October 21st, 2008 - 1:22 pm ICT by IANS  

Washington, Oct 21 (DPA) Insurance giant American International Group Inc, which was bailed out of a cash-flow crisis last month by a loan that temporarily made the US government its majority shareholder, said Monday that it would stop lobbying in Washington.A spokesman said that the company’s Washington office would continue to monitor federal lawmaking to assess impacts on AIG, but that routine work to influence congressional legislation would stop.

In addition, the company has cancelled more than 150 posh corporate events, saving an estimated $80 million. AIG management came under fierce criticism from lawmakers after the revelation that executives spend $440,000 on a retreat at a luxury spa, just days after the federal loan that kept the company afloat.

AIG is continuing to try to sell off assets to repay an $85-billion loan from the federal government.

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