It became known as the “AIG effect.” The insurance conglomerate held an incentive program at a resort just days after receiving its first TARP payout. Media outlets got hold of the story, called the legitimate event an executive junket, and hundreds of corporate meetings subsequently paid the price for the misrepresentation. “That recognition program was sponsored by the life insurance division. It had nothing to do with AIG Financial Products, which was the division built on credit ...

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