The U.S. Justice Department has dropped a probe of American International Group Inc executives involving the credit default swaps that sent the insurer to the brink of bankruptcy and forced a huge taxpayer bailout, lawyers for the executives said on Saturday.
The investigation had centered on AIG Financial Products, which nearly brought down the giant insurer after writing tens of billions of dollars on insurance-like contracts on complex securities backed by 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.
The criminal probe had focused on whether Joseph Cassano, who ran the financial products unit, and Andrew Forster, his deputy, knowingly misled investors about the company’s accounting losses on its credit default swaps portfolio.
……The Department of Justice declined to comment.
Of course they refuse to comment. AIG started feeding at the taxpayer trough in September of 2008, when it got an $85 billion bailout the first time it began to crumble. Thanks to Obama, that amount has reached $182 billion. Too big to fail, right? And apparently, not serious enough to prosecute the government-owned insurance group.
By the way, Obama and the Dems knew AIG intended to give huge bonuses to its CEOs while benefitting from taxpayer bailouts. They’re just as corrupt as their pals at AIG, and ya gotta help your partners in crime. This is what happens when the federal government sticks its big snout where it doesn’t belong.
We pay the price.