AIG Executive Said They Could Not See Losing "One Dollar" on Credit Default Swaps. Taxpayers Lost $182 Billion.

Joseph Cassano ran AIG Financial Products from London, managing $2 trillion in derivative trades including credit default swaps tied to subprime mortgages. In August 2007, he reassured investors with absolute confidence that losses were unthinkable. By December 2007, he doubled down: "It is very difficult to see how there can be any losses in these portfolios." Behind the scenes, his own accountant resigned after Cassano said he was "deliberately excluded" from valuing the swaps because he would "pollute the process." PricewaterhouseCoopers warned AIG of "material weaknesses." Cassano told them not to interfere. On September 16, 2008, AIG collapsed and required the largest government bailout in history: $182 billion of taxpayer money. The company that couldn't imagine losing one dollar needed the equivalent of 182 billion of them to survive. Cassano "retired" in March 2008 with a $34 million golden parachute and a $1 million per month consulting contract. He had earned $280 million over the previous 8 years. No criminal charges were ever filed.