AIG Halts Lobbying Against Mortgage Reforms

Law360, New York (October 20, 2008, 12:00 AM EDT) -- Responding to the furor over ways American International Group Inc. is spending its $120 billion government loan, the beleaguered financial services giant reportedly vowed Monday to stop lobbying against stronger mortgage industry controls.

At lawmakers’ urging, AIG is reviewing its expenses, suspending its lobbying efforts and saving $80 million by canceling approximately 160 events scheduled for coming months, the Wall Street Journal reported.

The belt-tightening comes after lawmakers accused AIG of profligacy amid reports of a lavish spa weekend the company bankrolled for favored employees last...
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