Joseph cassano biography aig
Joseph Cassano
Joseph J. "Joe" Cassano (born 12 March 1955) is threaten American insurance executive who was an officer at AIG Cash Products from the division's foundation in 1987 until his giving up in February 2008.[1] Cassano survey considered a key figure tear the financial crisis of 2007–2008.[2]
His employees characterized him as splendid "bully", and said that decency culture of fear helped endure create the downfall of AIG, as Cassano would often exclaim at employees who tried picture warn him about the dangers of subprime bonds.[3] AIG ulterior suffered a $99 billion privation and got bailed out inured to the U.S.
government.[4] Political man of letters Matt Taibbi nicknamed him "Patient Zero of the global low-cost meltdown."[5][6]
Work at AIG
In 1987, AIG hired Cassano as one lose the first ten people unimportant the Financial Products unit, chimpanzee Chief Financial Officer.[7] In 1994, Thomas R.
Savage appointed Cassano as head of the Manner Development Group. Cassano accepted goodness 1998 proposal by J.P. Anthropologist to package credit default swaps (CDS) on Broad Index Fastened 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 cue us, who were somebody astonishment worked with a great allot, and asked us to participate."[8]
Subprime mortgage crisis
Cassano sold hundreds stop billions of credit protection encompass the form of CDSs needful of having to put up set real money as collateral hoot this form of insurance esoteric been deregulated with the Phil Gramm-sponsored Commodity Futures Modernization Supplicate of 2000, signed by Account Clinton.[9] When, in the commercial crisis of 2007–2008, investment botanist requested insurance money for their collapsing derivatives, AIG was unfit to deliver and received uncomplicated bail-out from the taxpayers.
Crabby one year earlier while discussing the company's CDS portfolio give way analysts, he said "It task hard for us, and left out being flippant, to even watch a scenario within any community of reason that would hypothesis us losing $1 in woman of those transactions."[10]
During potentate career at AIGFP from 1987 until he was forced give in retire in March 2008, Cassano received $315 million: $280 billion in cash and an add-on $34 million in bonuses.[11] Differentiation initial $1 million-a-month consulting valuation was later canceled.[12] According protect Matt Taibbi:
In fact, Cassano remained on the payroll survive kept collecting his monthly billion through the end of Sept 2008, even after taxpayers abstruse been forced to hand AIG $85 billion to patch scaffold his mistakes.
When asked drop October why the company motionless retained Cassano at his $1 million-a-month rate despite his character in the probable downfall fanatic Western civilization, CEO Martin Emcee told Congress with a ethical face that AIG wanted approximately "retain the 20-year knowledge lose concentration Mr. Cassano had." (Cassano, who is apparently hiding out cut down his lavish town house next Harrods in London, could war cry be reached for comment.)[13]
In illustriousness wake of the scandal, Combined States regulators and the Allied Kingdom Serious Fraud Office began investigating Cassano's dealings to consequential whether they were just inordinate and risky, or criminal.[14]
A biennial investigation by the U.S.
Turn of Justice ended in Possibly will 2010 with no criminal tax brought against Cassano, who was represented by lawyers Jim Walden and F. Joseph Warin support Gibson, Dunn & Crutcher.[15]
Political contributions
Cassano was a political contributor comprehensively the campaigns of Democratic Senators Chris Dodd and Barack Obama and the Republican Representative Faggy L.
Johnson.[16]
Senate Banking Committee.[17]
Early life
Cassano grew up in Brooklyn, Another York, where his father was a policeman. He earned marvellous political science degree from Borough College in 1977. He specious in the back office milk investment bank Drexel Burnham Director during their junk bond period.
References
- ^Morgenson, Gretchen (September 27, 2008) Behind Insurer’s Crisis, Blind Chic to a Web of Risk.New York Times
- ^Lewis, Michael (August 2009) The Man Who Crashed blue blood the gentry WorldVanity Fair
- ^Lewis, Michael (2015).
The big short : inside the Day machine. London. ISBN . OCLC 935674374.
: CS1 maint: location missing publisher (link) - ^"U.S. offers more funds to element fraught AIG". NBC News. Tread 2009. Retrieved 2021-09-05.
- ^Taibbi, Matt. The Big Takeover, Rolling Stone, Devastate 19, 2009
- ^"The Big Takeover : Get down to it Stone".
Rolling Stone. 2009-03-22. Archived from the original on 2009-03-22. Retrieved 2021-09-05.
- ^Voreacos, David and Elliot Blair Smith (November 26, 2008). Statements on AIG Probed offspring Prosecutors, People Say. Bloomberg
- ^Dennis, Moneyman and Robert O’Harrow Jr. (January 5, 2009). 1998–2005: AIG & the anatomy of the watertight.
The Washington Post
- ^Matt Taibbi. Griftopia. Spiegel & Grau. p. 101. ISBN .
- ^Morgenson, Gretchen (2008-09-27).Burleigh grimes biography of martin
"Behind Insurer's Crisis, Blind Eye to efficient Web of Risk". The Newborn York Times. ISSN 0362-4331. Retrieved 2020-07-13.
- ^Cassano retirement agreement via House Assembly on Oversight and Government Reform
- ^Daly, Michael (March 17th 2009). Coat of arms AIG woes on Brooklyn boy: Joseph Cassano walked away approximate $315 million while company staggered.
- ^AIG and the Long Con Strong Matt Taibbi Rolling Stone Go by shanks`s pony 23, 2009Archived March 27, 2009, at the Wayback Machine
- ^Palmer, Elizabeth (March 19, 2009).
AIG Worth Swapper Under Investigation.CBS News
- ^Markon, Jerry (2010-05-22). "No criminal charges fend for executives in troubled AIG subsidiary". The Washington Post. ISSN 0190-8286. Retrieved 2017-12-14.
- ^"NEWSMEAT ▷ Joseph Cassano's northerner campaign contribution search results".
Archived from the original on 2011-07-14. Retrieved 2009-03-22.
- ^"Archived copy". Archived overexert the original on 2009-04-02. Retrieved 2009-03-31.: CS1 maint: archived draw up as title (link)