AIG execs won’t face U.S. criminal charges-WSJ

NEW YORK, May 21 (BestGrowthStock) – U.S. federal prosecutors will
not charge executives of American International Group Inc
(AIG.N: ) over credit default swaps, the Wall Street Journal
reported on Friday.

The decision not to prosecute the executives concludes a
two-year investigation by the Department of Justice, according
to the report, which cited people familar with the matter.

The probe focused on Joseph Cassano, who headed a
London-based unit of AIG called Financial Products. Other
executives at the unit, Andrew Forster and Tom Athan, also were
investigation targets, the Journal said.

An AIG spokeswoman was not immediately available for
comment, nor was the media office of the Justice Department.

AIG Financial Products nearly brought down AIG in September
2008 after writing tens of billions of dollars worth of
insurance-like contracts on complex securities-backed mortgages
that turned out to be toxic.

The U.S. government stepped in with a $182 billion bailout
to avert a bankruptcy filing by AIG and stave off an even worse
global financial crisis. Cassano resigned under pressure in
March 2008, as AIG’s financial situation began to weaken.

Over the course of the next year, AIG took writedowns of
more than $40 billion on the swaps and had to put up billions
more in collateral to counterparties.

Stock Market Investing

(Reporting by Nick Zieminski; Editing by Jerry Norton)

AIG execs won’t face U.S. criminal charges-WSJ