Joseph Cassano, who was the person handling the supervision of the American International Group unit that damned the company and provoked a $182 billion federal bailout, spoke in defense of his investment decisions on Wednesday, adding that he may possibly have saved taxpayers money, if he had continued to work with the firm.
Cassano told the Financial Crisis Inquiry Commission, a congressionally appointed board said that he would have been able to negotiate in a better way on behalf of the company.
Cassano, who is a mysterious figure, who largely tied to be underground in public view even as his handiwork at AIG Financial Products required one of the biggest Government bailouts, was amongst more than a few current and previous Wall Street executives, who swore about the role of multifaceted investments that is known as derivatives in the monetary catastrophe.
The AIG unit traded in a type of derivative that is identified as a credit-default swap, fundamentally an insurance policy for investments that is made by banks in mortgages. When the mortgages turned into a bad shape, the investments lost its worth.
Financial products could not meet its arrears, which in turn led to the collapse of the company.