Report: Federal Prosecutors ‘Closing In’ on Joe Cassano


Joe Cassano — the Brooklyn-born, London-based head of AIG’s financial-products division who made $300 million pushing the CDS that led to the company’s ruin — has managed to keep a low profile since the company imploded last fall, but ABC News reports today that FBI and federal prosecutors are “closing in” on Cassano, whom they say “set up some dozens of separate companies, some off-shore, to handle the transactions, effectively keeping them off the books of AIG and out of sight of regulators in the U.S. and the United Kingdom.” They note that he was enabled by U.K. regulators. “There was a culture that was called light touch regulation,” MP Vince Cable told the network, “which meant that these activities could go on and nobody kept a close eye on it.” From his picture, we’d say Cassano’s a guy who looks familiar with light touching. [ABC News]