Joe Cassano's introduction of credit-default swaps led to a financial crisis at AIG. AIG offered insurance protection to buyers against losses on debts and loans of borrowers, amounting to $447 billion.
The housing crisis led to a fall in value of the assets insured. After the company lost $11 billion, Cassano quit in February 2008. Cassano faces lawsuit for cheating investors who suffered huge losses due to the company's downfall.
The American government finally granted $150 billion to revive the insurance company. PricewaterhouseCoopers, who audited AIG said there were discrepancies in financial reporting at Cassano's division. Cassano is blamed for leading AIG to bankruptcy.
Image: US insurer American International Group (AIG) office in Tokyo.| Photograph: Yuriko Nakao/Reuters
Also read: 4 million jobs will kickstart US economy: Obama
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