AIG’s (AIG) Joseph Cassano, the onetime head of the international insurer’s failed financial-products unit AIGFP, is about to walk off scot-free. All is forgiven, apparently.
The NYT reports that the Justice Department found after a two-year intense investigation of the trillion dollars of credit default swaps AIGFP wrote, that there was insufficient evidence to bring charges against Mr. Cassano.
“Although a 2-year investigation is tough for anyone, the results are wholly appropriate in light of our client’s factual innocence,” F. Joseph Warin, an attorney for Cassano, said in a statement.
“The large group of federal agents and prosecutors was diligent and professional throughout the investigation, and our client is grateful that they did their jobs by following the facts to the end,” Warin said. “This result was the product of two things: an innocent client and fair prosecutors and agents. The system worked.”
Mr. Cassano, who ran the company’s Financial Products division from London with virtually no U.S. regulation but a mandate to make green, resigned in late February 2008 after AIG wrote down $11 billion on the insurance it had underwritten on the mortgage securities. Although no longer employed after the 2008 meltdown, Cassano still received his 2008 $35 million bonus, in addition to the $280 million he’d earned over an eight year period. He raked in all his millions while pushing AIG and the entire global financial system right to the brink. Yes, the system worked indeed.