BusinessBusiness RecoveryUS prosecutor probe targets ex-London chief in AIG collapse

US prosecutor probe targets ex-London chief in AIG collapse

US prosecutors investigating the AIG collapse probe the role played by one of its London chiefs in the insurer's demise

US prosecutors determining the causes for the collapse of
AIG
are scrutinising whether Joseph Cassano, former head of its London-based
financial products division, may have misled investors over the derivatives
investments which brought the insurance giant down.

Cassano, named one of CNN’s ’10 Most Wanted’ culprits of the crisis, was
reportedly in a fierce internal battle with auditors and trading partners about
the value of its credit default swaps, The Independent reports.

However, at the same time last December, he told an investor conference he
did not expect the CDS positions to generate losses, and that even the
writedowns so far would be recouped.

Cassano’s lawyer said the executive did not act unlawfully and was
co-operating with investigators.

Further reading:

David Herzog steps into Steven Bensinger shoes as AIG’s
new CFO

AIG faces probe for ‘outrageous expenditure’

Read
The Independent story

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