moth, has found itself added to the list of financial related firms who due to the impact of the sub-prime credit crisis was forced to announced a major tunorver of one its finance related executives. Yesterday AIG disclosed according to Crain's New York,a fourth-quarter loss of $5.29 billion, or $2.08 per share, compared with earnings of $3.44 billion during the same period in 2006. The loss was due primarily to $11.12 billion worth of pre-tax losses in the Manhattan’s based company’s credit default swap portfolio.Today as a direct consequence of AIG's loss, the company announced that Joseph Cassano, the head of the firm's financial products unit will be stepping down. According to a story by Hugh Son on Bloomberg,
Cassano co-founded the business in 1987 and built it into a unit providing financial guarantees on more than $500 billion of assets at year-end, including $61.4 billion in securities with ties to U.S. subprime mortgages. He will be replaced on an interim basis by William Dooley, 54, a senior vice president of the New York-based insurer's financial services businesses.The real question is whether there are more management changes to come from AIG and if so, where? Stay tuned.
For more:
Financial Week
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