SEC also drops investigation into colleague Foster

Former head of AIG Financial Products in London Joseph Cassano has escaped a Securities and Exchange Commission (SEC) investigation into the near collapse of AIG in 2008.

It follows the Department of Justice’s decision last month to drop its criminal investigation of Cassano’s activities.

Cassano’s lawyers said: “We are pleased the commission, like the DoJ, has decided to close its inquiry. Commission staff demonstrated the utmost professionalism. We think they realised our client acted in good faith, kept his superiors informed and was honest with investors.”

The SEC has also dropped its probe of Andrew Foster, who worked for Cassano at AIG Financial Products.

AIG said: “We welcome the SEC’s decision. We continue to co-operate with other authorities on their assessment of these events as we focus on strengthening our businesses and repaying America’s taxpayers.”

The SEC had no comment.