SEC Backs Off AIG, Executives

NU Online News Service, June 17, 12:15 p.m. EDT

The U.S. Securities and Exchange Commission has ended its investigation of American International Group Inc. (AIG) and Joseph Cassano, former head of the company's Financial Products unit.

No charges were filed.

"We are pleased that the commission, like [the U.S. Department of Justice], has decided to close its inquiry, which is completely appropriate in light of the facts," said F. Joseph Warin and Jim Walden, attorneys for Mr. Cassano from the firm Gibson Dunn & Crutcher.

The DOJ closed its investigation last month without filing charges.

"We think they realized that our client acted in good faith, kept his superiors informed, and was honest with investors," the attorneys added.

AIG said it continues "to cooperate with other authorities on their assessment of these events as we focus on strengthening our businesses and repaying America's taxpayers."

Mr. Cassano left AIG in March 2008. Authorities probed the former executive to determine if he and other AIG executives misled investors.

AIG's Financial Products unit, with its dealings in credit default swaps, was at the center of the company's near collapse--which led to the federal government making $182.3 billion available via the Troubled Asset Relief Program to bail out the massive company. AIG said it owed the government $101.6 billion as of March 31.

A recent Congressional Oversight Panel report questioned whether the government will ever get all its money back. The bailout has distorted the marketplace and poses an "extraordinary risk to taxpayers," the report states.

Federal Reserve Board Chairman Ben Bernanke recently told legislators he believes AIG will repay the government.

At a shareholders meeting last month, AIG President and Chief Executive Officer Robert Benmosche said the company remains committed to repaying its debt to the federal government.

Top Story

Blizzard of 2015 bypasses New York City, New England hit hard

New York City's worst blizzard was a bust. So what went wrong?

Top Story

Here are 5 things every employer needs to know about the millennials in their workforce

There are many myths and stereotypes surrounding the millennial generation, but here are the facts.

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone
         

Advertisement. Closing in 15 seconds.