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AIG Financial Products probe to end with no charges: Report

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WASHINGTON—Federal prosecutors reportedly are ready to end their two-year investigation into American International Group Inc.’s financial products unit without filing charges against anyone involved in the transactions that caused AIG’s near-collapse.

According to a CBS News report on Friday, the investigation had centered on Joseph Cassano, who headed the AIG Financial Products Corp., a London-based unit of AIG. Mr. Cassano is expected to meet this week with U.S. Justice Department attorneys in what likely will be the end of the investigation with no criminal charges being filed, according to the report.

AIG Financial Products’ exposure to credit default swaps linked to subprime mortgages is blamed for bringing the insurance holding company to the brink of collapse in September 2008 and prompting a $182.3 billion federal bailout to save it from bankruptcy.

According to CBS News, federal investigators have found no evidence that Mr. Cassano lied to his bosses, shareholders or outside auditors about AIG’s financial problems.

As of last fall, the Justice Department had planned to convene a grand jury to consider an indictment of Mr. Cassano, the report said in citing people familiar with the matter. But information obtained in recent months from AIG’s outside auditor, PricewaterhouseCoopers L.L.P., indicates that plan has been suspended.

Mr. Cassano left AIG in February 2008.

A spokesman for the Justice Department did not immediately respond to a request for comment.

An AIG spokesman declined to comment.