As most folks not living under a rock know at this point, Ed "mea culpa" Liddy, has formally responded to harsh public criticism over AIG’s tin-eared approach to frugal corporate spending. Posted on any and all available news sources, blogs, and bathroom walls, Liddy’s minions made a savvy PR move reminiscent of the 1970’s tobacco company warnings that say cigarettes are bad for your health. In his official AIG response, Liddy promised to mend AIG’s ways, to tighten belts and walk the straight and narrow. (Of course, it should be noted that he made this promise after receiving what now amounts to more than 4,000 negative stories: keywords "AIG + Party.") In particular, he apologized to the American taxpayers on hundreds of posts like this one in penitent fashion – note the single comment posted underneath this article from savvy corporate user "AIG Blog Relations."
Saturday Night Live’s "Weekend Update" shared its opinion on AIG’s shenanigans in last week’s episode. We think the Street will agree with their sentiment:
Here’s the problem: after making a big show of contrition Ed did the unthinkable, he let another party – excuse me, conference – slip through the cracks. The gathering, being held for AIG financial advisor subsidiaries, FCC Securities Corporation and Advantage Capital Corporation, seems to flout the promise Ed made to the Street. He would not have gatherings unless they were required by law or critical to the business.
The question is simple, was this event "required by law" or deemed "absolutely critical to sustain ongoing business needs"? The facts appear to not be in Liddy’s favor. So, if this isn’t required by law and it doesn’t appear to be critical to sustain ongoing business needs, what is it? It must be something else. It must be something that Liddy promised the street he wouldn’t permit. Perhaps the street should take solace in the fact that AIG will hopefully put out another press release that promises things that they are unwilling to deliver.