AIG Executives Not Targeted for Criminal Charges

Former American International Group executive Joseph Cassano

/ AP/CBS

CBS News confirmed Friday night that federal prosecutors have informed attorneys for executives of American International Group Inc. that they are not targets of criminal charges.

The decision to conclude the two-year investigation into AIG executives comes after CBS News chief investigative correspondent Armen Keteyian first reported on April 6 that the Justice Department was likely to drop charges against Cassano.

The investigation focused on whether the insurer's executives deceived investors and its outside auditor about the company's risky investments in credit-default swaps partly tied to mortgages, the newspaper reports. Those investments nearly brought AIG down in 2008.

Investigators focused on Joseph Cassano, the former head of AIG's Financial Products unit who now no longer works for the company.

"The system worked," Cassano's attorneys, F. Joseph Warin and Jim Walden, said in a statement. "Although a 2-year, intense investigation is tough for anyone, the results are wholly appropriate in light of our client's factual innocence."

The conclusion of the Justice Department's investigation doesn't mean AIG is free and clear from government probes. The Securities and Exchange Commission hasn't ruled out the possibility of filing a civil fraud lawsuit against the insurer for securities violations, the newspaper reports.

[cleric60]

Money... money... money... makes the world go around...keeps you also out of jail. Are we surprized at this decision????

[rightbehind]

They're afraid to tackle these clowns because the phony baloney markets of wall street will tank and all that imaginary wealth will disappear. It's going to happen sooner or later. Might as well deal with it now and drag the clowns out in leg irons. The money is already gone. ceos and top level management of the big banks have already looted it. Wall Street has no means to pay out all the speculation now. How's it feel to have feed upon one another. wall street = economic cannibalism.

[usdefender1]

Soon, the American people will have nothing. Obama destroyed business.

[rightbehind]

Are you talking about the phony baloney markets of wall street casino?? we need to get rid of those parasites. We need to throw up the trade barriers to anything that was off shored to a third world country for their sakes to stop neocons from taking advantage of desperation. We need to deal with economies similar to our own. If you want to sell it here it has to be made here or it gets taxed. That works for every nation. Reaganomics the race to the bottom needs to end.

[alphaa10000]

You have it backwards-- AIG did its best to destroy the rest of us. AIG customers were so angry at AIG executives, they demonstrated at their homes in Charlotte, NC.

And if AIG actions are not yet technically "criminal", the lack of a statutory basis for charges is the handiwork of the GOP DEregulatory regime.

In fact, the GOP (1998-2008) led the charge to remove consumer protections from banking.

(With a "defender" like you, the recession is easily explained.)

[rightbehind]

The clown they have in the picture won't even come back to the US. Even he's smart enough to know a crime has been committed. Why can't the justice dept. figure it out? If they actually go after these crooks wall street will tank. wall street is the biggest ponzi scheme of all.

[jimbot1957]

Ever tried to untangle a wad of string without cutting it? When wall street gets all the A-students and the Justice Dept. gets the rest, why would anyone be surprised that sophisticated criminals cannot even be charged?

[ejavam07]

Mr. Obama: was this you that just sold out to buy your next election?

[rightbehind]

Sold out to whom?? The majority of the US want these crooks brought to justice. How does your spin connect here?? This problem existed before this President took office.

[alphaa10000]

You voted for Bush-- twice. You must like "selling out", or else you do not yet realize corporate abusers like BP and megabanks like AIG put most of their money on Bush and McCain.

And you are in bad company, because such corporations plan to buy the next election. You simply make it easier for them.

[ejavam07]

That's right: now that they've stolen all that money they can afford lawyers who have already talked the government out of appropriate prosecution.

You (the government) are making a huge deal out of prosecuting the little guy because you are too afraid to go after the big guy. And you're too afraid because you know the the big guy owns your government by owning your representatives.

There is only one way to take back what is otherwise a pretty good thing: public financing (equal spending) of all public elections.

And wouldn't it be appropriate if our representatives made the average of the living wage of their constituencies?

It's not that congress can't make good laws: it's that their next meal ticket (as in next election) is going to be determined by the next lobbyist that interviews them. (Sounds backwards, doesn't it?)

Do we really want to put our representatives into the position of having to be high-priced hookers to big corporations just to get elected, or are we going to insist on representation of, by, and for the people? (That's what the Tea Party was originally about: 'taxation without representation is tyranny'.)

[wfw3536]

What a sell out by the Obama administration. All these politicans are worried about is the money. Obama led politicans with campaign contributions in the previous election. Oh, I guess these AIG folks are too big to convict just like AIG and Freddie and Fanny are too big to fail. What a joke.

[rockcutr]

The chaos continues.
Busyness as usual.
Just the companys change CEO's.
Monopoly of corporations too large to fail.
This is the picture of america as a third world country.
Not all business is evil, just most of it.
Citizens cannot walk away with out some of the blame.
Those who bet on stocks, derivitaves and insurance are guilty as any corporation for placing trust in a gambling operation.
You can go to jail for being too drunk or too stoned on pot, but bilk the country out of billions of dollars. Ya get a medal...what a bunch of jackals.

[stormerF3]

That is good we need to Target the Senators and Congressmen who were the crooks and let this happen,Dodd,Frank,Waters,Schumer,Rangel,and the rest of the fools who knew nothing of what a derivative is but said it was good to make sub-prime loans to people who could not make payments and lied about their income and ability to make payments.

[rightbehind]

Even the economics professors have a hard time describing a derivative. Sounds like something a dog would leave behind in the yard. Based on my understanding it's a side "bet" that something will pass or fail, increase or decrease, take on one state or another. We need to end reaganomics the economics of dung race to the bottom.

[babooph]

CEO money is very big-the reason is THEY CONTROL THE LOBBYIST-of course no charges..