This is what happens when you give money to people... they treat it like a gift and waste it:

AIG executives spent $500,000 at an exclusive resort just days after the U.S. government agreed to spend $85 billion to protect the giant insurer from collapse, according to Rep. Henry Waxman, the California Democrat who chairs the House Oversight Committee.

You can read all the details at OnDeadline, but honestly... is anyone surprised?  Add this to the long list of reasons why bailing out failing companies that made bad decisions is a bad idea.  The company got themselves in too deep by selling Credit Default Swaps, which they thought they could sell and sell and sell, and never seemed to give consideration to the idea that they might actually have to pay out on them.  And now, you're suddenly expecting them to behave reasonably because the government bailed them out?