American Internation Group's (NYSE: AIG) top earners enjoyed a luxurious retreat at the St. Regis Monarch Beach resort in Dana Point, Caifornia -- manicures, pedicures and luxury dining at a cost of $440,000, with the tab helpfully picked up by the United States taxpayers.But apparently that wasn't enough to save the resort from the ailing economy, and the property went into foreclosure yesterday. The Wall Street Journal reports (subscription required) that "The resort has missed payments since April on a $70 million mezzanine loan from Citigroup. The resort's $230 million mortgage, held mostly by units of Prudential Financial Inc. and a hedge fund, isn't in default, according to people familiar with the matter."
The resort continues to operate and there are no plans to shut the place down, although occupancy has continued to decline.
I think that, in the spirit of equal protection, the United States government should bailout the resort -- and give it enough extra cash to go buy some toxic derivatives from AIG, thereby helping that steaming pile of sewage deal with its own problems as well. I mean, why not? Why should AIG's creditors get bailed out while St. Regis' get told to go play with their Lenny Dykstra rookie cards?
I think that, in the spirit of equal protection, the United States government should bailout the resort -- and give it enough extra cash to go buy some toxic derivatives from AIG, thereby helping that steaming pile of sewage deal with its own problems as well. I mean, why not? Why should AIG's creditors get bailed out while St. Regis' get told to go play with their Lenny Dykstra rookie cards?
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Reader Comments (Page 1 of 1)
7-21-2009 @ 9:16PM
Donovan said...
No wonder Citibank sent out thousand of notices to their credit card holders. Their APR rates are going up to 29.99%
Nothing worse the foreclosing on a huge white elephant. Thats most likely worth several million less these days, then whats owed on it. And how does Citibank/Citicorp think they can afford the upkeep on this joint? Tax's, insurance, grounds upkeep, employees salaries, etc. O yea, Their screwing all their card members with excessive interest rates, plus they have tax payers TARP funds as well.
7-21-2009 @ 5:42PM
ilikeasianladies said...
Now if only AIG would go into foreclosure and never return for it..
7-21-2009 @ 5:45PM
ironmikej1969 said...
The picture you show is taken from the Ritz Carlton at Laguna Niguel, not the St. Regis, Dana Point!
7-22-2009 @ 12:23AM
bluepacificvista said...
If it's the St. Regis that is in trouble, why do you post a picture taken from the Ritz Carlton - nearby, but a far more elegant hotel/resort, and on the water front at that!?
7-22-2009 @ 2:10AM
Bobby N. Harmon said...
I sincerely believe that all of AIG's executives who contributed to this mess should be sent on long, well-deserved vacations to the Sing Sing resort, or perhaps our government could better use our TARP tax money to refurbish and reopen the Alcatraz resort with its spectacular ocean views in every direction, to provide appropriate accommodations for these crooks.
For background information on why these vacations are well-deserved and long-overdue, please visit:
http://www.kycbs.net/AIG.htm
http://www.kycbs.net/Allied-World-Assurance.htm
http://www.kycbs.net/CITIGROUP.htm
Bon Voyage, American International Gangsters!
7-22-2009 @ 7:32AM
diesel1507 said...
is that Citigroup C or Citigroup CIT ?