No criminal charges seen in AIG's collapse: TV report

NEW YORK Fri Apr 2, 2010 8:48pm EDT

The logo of American International Group (AIG) is seen at their offices in New York in this file photograph from September 18, 2008. REUTERS/Eric Thayer/Files

The logo of American International Group (AIG) is seen at their offices in New York in this file photograph from September 18, 2008.

Credit: Reuters/Eric Thayer/Files

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NEW YORK (Reuters) - CBS News reported late Friday that Joseph Cassano, the former AIG executive closely linked with the giant insurer's near collapse in September 2008, will meet with U.S. Justice Department attorneys next week in what will probably end the two-year criminal investigation into the company -- with no criminal charges likely to be filed.

AIG received a $182 billion federal bailout during the height of Wall Street's liquidity crisis in September 2008, when regulators feared that AIG's massive losses from complex transactions could crash the global financial system.

"Sources tell CBS News that the criminal case against Cassano - once called 'the Man who Crashed the World' - has 'hit a brick wall,'" the network said in an exclusive story published on its website.

Federal investigators have found no evidence that Cassano lied to his bosses or shareholders about AIG's financial problems, sources told CBS News, according to the exclusive story posted online.

That means no one is likely to be held criminally liable for the company's downfall, CBS News reported.

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Comments (2)
ejpearcy wrote:
Sweet. Goldman Sachs, too? Madoff? When are WE THE PEOPLE going to explain to them what time it is?

Apr 03, 2010 3:37am EDT  --  Report as abuse
Benny_Acosta wrote:
So let me see if I understand this. My family and millions of other families in similar financial circumstances, have to tighten their belts and do without, so that banks like AIG could survive.

The government takes our tax money and gives it to them. They pay themselves handsomely and continue to drive the business into the ground because of their irresponsibility.

And now that they have finally succeeded in killing their business and taking money away from my children, there are likely to be no criminal charges filed?

But if I were to go and steal fifty dollars from another person even if I didn’t hurt them, they would lock me in jail and throw away the key.

A pick pocket will go to jail. But an embezzler sucking billions of dollars out of the pockets of whole sectors of society gets to enjoy their ill gotten gains?!

And these stupid politicians wonder why people are angry? Too big to fail?! They failed! And they took billions with them. Now what? They are thieves and liars all. Forbid banks from profiting. They don’t deserve to be counted as legitimate businesses. They are financial infrastructure and should be treated as nothing more.

Apr 03, 2010 10:05am EDT  --  Report as abuse
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