Joseph Cassano: Peekaboo!



“It is hard for us, and without being flippant, to even see a scenario within any kind of realm of reason that would see us losing $1 in any of those transactions,”

– Joseph Cassano, Head of AIG Financial Products, August 2007

This may be the most important and prescient quote you could possibly harvest to sum up the hubris, recklessness and deceit of the levered derivatives era.  Joseph Cassano, the man that many are calling the architect of our economic destruction, actually made this statement on a conference call with AIG investors in August of 2007.  As batsh@t insane as this type of comment sounds now in the spring of 2009 given what we’ve seen since then, the casual reader of this blog must understand that this exact type of swagger was on display pretty much 24/7 in those days, anywhere a banker was manipulating Other Peoples Money.

According to the NY Post and ABC News, Cassano, who is currently in London, is about to get dragged back in to the fray to answer for his role in a possible fraud during his time at the financial products unit of The Notorious AIG

Essentially, Cassano did whatever he wanted, putting insurance on trillions in junk and moving things onto the balance sheets of entities he himself created in an effort to avoid taxes and regulation. 

Wait, here’s the good news:  For his hard work and fiscal demolition expertise, Cassano’s pay worked out to around $300 million US.  Yep, he was paid the salary of Tiger Woods, Alex Rodriguez, LeBron James and Christina Aguilera combined for a job well done, taking the global economy to the brink of catastrophe with nothing more than a spreadsheet.

He also was slated to receive $1 million a year in salary after he left AIG, but in an uncharacteristic move, someone in Congress woke up in time to call BS on that.

Anyway, Cassano may want to brush up on his list of non-extradition countries and helpful foreign phrases to be used at surreptitious border crossings.  One never knows when they may come in handy!

Full Story:  Ex-AIG Big May Face Fraud Rap (NY Post)


Tags: , , , , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Automated Regression Testing commented on Nov 28

    … [Trackback]

    […] Information on that Topic: […]

  2. tangerine banque sign-in commented on Nov 29

    … [Trackback]

    […] Find More here to that Topic: […]

  3. 토토 commented on Dec 25

    … [Trackback]

    […] Information to that Topic: […]