The SEC has sent Wells Notices to various employees of AIG Financial Products, says ABC News, which sources this to the July issue of Corporate Counsel magazine, which apparently did not publish its scoop online.
Can lawsuits alleging the firm committed securities violations be far behind?
SEC fines and penalties on some AIG FP executives, presumably including the legendary Joseph Cassano, “could range north of $1 million,” according to ABC.
And that is not the only terrible news today brings for employees of the deranged credit derivatives destruction factory: Today a Treasury Department official said the Obama Administration “pay czar” had denied to grant $2.4 million in bonuses to certain unnamed AIG employees.
Now that the SEC has diverted some resources from its massive insider trading case against Mark Cuban, we hope it can spare some time to focus on Cassano and company. (And perhaps the fines can be larger than chicken feed).
In the old days, the SEC did go after AIG: Back in 2005, the commission fined the insurer $126 million in a case involving special purpose vehicles AIG Financial Products had arranged for corporate clients. Then-CEO Hank Greenberg paid most of the fine out of the the AIG FP bonus pool. And that was before the company went on the CDS-writing rampage that destroyed the economy.
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