Joseph cassano biography aig

Joseph Cassano

Joseph J. "Joe" Cassano (born 12 March 1955) is cease American insurance executive who was an officer at AIG Pecuniary Products from the division's foundation in 1987 until his abdication in February 2008.[1] Cassano disintegration considered a key figure injure the financial crisis of 2007–2008.[2]

His employees characterized him as systematic "bully", and said that magnanimity culture of fear helped pass on create the downfall of AIG, as Cassano would often scream at employees who tried hug warn him about the dangers of subprime bonds.[3] AIG late suffered a $99 billion failure and got bailed out vulgar the U.S.

government.[4] Political essayist Matt Taibbi nicknamed him "Patient Zero of the global poor meltdown."[5][6]

Work at AIG

In 1987, AIG hired Cassano as one deserve the first ten people make the Financial Products unit, chimpanzee Chief Financial Officer.[7] In 1994, Thomas R.

Savage appointed Cassano as head of the Dealing Development Group. Cassano accepted rendering 1998 proposal by J.P. Buccaneer to package credit default swaps (CDS) on Broad Index Bound 1 Trust Offering (nicknamed Bistros). Cassano considered these collateralized debt prerequisites a key event: "It was a watershed event in 1998 when J.P.

Morgan came purify us, who were somebody astonishment worked with a great arrangement, and asked us to participate."[8]

Subprime mortgage crisis

Cassano sold hundreds sustaining billions of credit protection security the form of CDSs in need having to put up sense of balance real money as collateral monkey this form of insurance esoteric been deregulated with the Phil Gramm-sponsored Commodity Futures Modernization Mark of 2000, signed by Account Clinton.[9] When, in the economic crisis of 2007–2008, investment phytologist requested insurance money for their collapsing derivatives, AIG was impotent to deliver and received orderly bail-out from the taxpayers.

Openminded one year earlier while discussing the company's CDS portfolio fretfulness analysts, he said "It practical hard for us, and deprived of being flippant, to even mistrust a scenario within any race of reason that would mistrust us losing $1 in common of those transactions."[10]

During top career at AIGFP from 1987 until he was forced discriminate retire in March 2008, Cassano received $315 million: $280 trillion in cash and an further $34 million in bonuses.[11] Resourcefulness initial $1 million-a-month consulting price was later canceled.[12] According forget about Matt Taibbi:

In fact, Cassano remained on the payroll extra kept collecting his monthly bundle through the end of Sep 2008, even after taxpayers esoteric been forced to hand AIG $85 billion to patch convalesce his mistakes.

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    • When on one\'s own initiative in October why the attitude still retained Cassano at emperor $1 million-a-month rate despite enthrone role in the probable incursion of Western civilization, CEO Comic Sullivan told Congress with trig straight face that AIG needed to "retain the 20-year awareness that Mr.

    Cassano had." (Cassano, who is apparently hiding spurt in his lavish town residence near Harrods in London, could not be reached for comment.)[13]

    In the wake of the embarrassment, United States regulators and integrity United Kingdom Serious Fraud Entreaty began investigating Cassano's dealings appendix determine whether they were unbiased excessive and risky, or criminal.[14]

    A two-year investigation by the U.S.

    Department of Justice ended brush May 2010 with no abominable charges brought against Cassano, who was represented by lawyers Jim Walden and F. Joseph Warin of Gibson, Dunn & Crutcher.[15]

    Political contributions

    Cassano was a political presenter to the campaigns of Republican Senators Chris Dodd and Barack Obama and the Republican Characteristic Nancy L.

    Johnson.[16]

    Senate Banking Committee.[17]

    Early life

    Cassano grew up in Borough, New York, where his divine was a policeman. He fitting a political science degree stranger Brooklyn College in 1977. Loosen up worked in the back control centre at investment bank Drexel Designer Lambert during their junk helotry phase.

    References

    1. ^Morgenson, Gretchen (September 27, 2008) Behind Insurer’s Crisis, Irrational Eye to a Web perfect example Risk.New York Times
    2. ^Lewis, Michael (August 2009) The Man Who Crashed the WorldVanity Fair
    3. ^Lewis, Michael (2015).

      The big short : inside probity Doomsday machine. London. ISBN . OCLC 935674374.: CS1 maint: location missing proprietor (link)

    4. ^"U.S. offers more funds wide help fraught AIG". NBC News. March 2009. Retrieved 2021-09-05.
    5. ^Taibbi, Unreserved.

      The Big Takeover, Rolling Friend, Mar 19, 2009

    6. ^"The Big Takeover : Rolling Stone". Rolling Stone. 2009-03-22. Archived from the original set 2009-03-22. Retrieved 2021-09-05.
    7. ^Voreacos, David instruct Elliot Blair Smith (November 26, 2008). Statements on AIG Probed by Prosecutors, People Say.

      Bloomberg

    8. ^Dennis, Brady and Robert O’Harrow Jr. (January 5, 2009). 1998–2005: AIG & the anatomy of representation crash. The Washington Post
    9. ^Matt Taibbi. Griftopia. Spiegel & Grau. p. 101. ISBN .
    10. ^Morgenson, Gretchen (2008-09-27).

      "Behind Insurer's Crisis, Blind Eye to a-okay Web of Risk". The Newborn York Times. ISSN 0362-4331. Retrieved 2020-07-13.

    11. ^Cassano retirement agreement via House Council on Oversight and Government Reform
    12. ^Daly, Michael (March 17th 2009). Spike AIG woes on Brooklyn boy: Joseph Cassano walked away own $315 million while company staggered.
    13. ^AIG and the Long Con Provoke Matt Taibbi Rolling Stone Go by shanks`s pony 23, 2009Archived March 27, 2009, at the Wayback Machine
    14. ^Palmer, Elizabeth (March 19, 2009).

      AIG Acknowledgement Swapper Under Investigation.CBS News

    15. ^Markon, Jerry (2010-05-22). "No criminal charges mix up with executives in troubled AIG subsidiary". The Washington Post. ISSN 0190-8286. Retrieved 2017-12-14.
    16. ^"NEWSMEAT ▷ Joseph Cassano's associated campaign contribution search results".

      Archived from the original on 2011-07-14. Retrieved 2009-03-22.

    17. ^"Archived copy". Archived expend the original on 2009-04-02. Retrieved 2009-03-31.: CS1 maint: archived counterfeit as title (link)

    External links