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aggravating insurance giants

Feds May Not Be Able to Charge AIG’s Joe Cassano

Despite the convincing case made by Michael Lewis against the former AIG Financial Products head, and Cassano's own ridiculously suspicious-looking head shot, the feds may not have enough to bring criminal charges against him. Turns out, his usage of the scary "negative-basis" accounting adjustment to disguise the company's billions of dollars worth of exposure was signed off on by auditors: "Prosecutors have obtained notes written by a PwC auditor from a November 2007 meeting that appear to show Mr. Cassano informed the auditor about the adjustment and its potential positive impact, according to people familiar with the matter." [WSJ]

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