Why Wall Street could go to jail

Corporate officers were making reassuring statements about financial prospects just days before Armageddon hit their companies -- and investors' portfolios. Here's some prominent cases.

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AIG

"It is hard for us, without being flippant, to even see a scenario ... within any kind of realm of reason that would see us losing $1 in any of these [credit default swap] transactions." -- Joseph Cassano, head of AIG Financial Products, August 2007

Time to Armageddon: 13 months

Saved by federal bailout on Sept. 16, 2008, with federal loan commitments and investments now totaling $150 billion. Under scrutiny by federal prosecutors and the SEC.

By Roger Parloff

NEXT: AIG

Last updated January 06 2009: 12:16 PM ET

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Three days that shook the world

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Why Wall Street could go to jail

Corporate officers were making reassuring statements about financial prospects just days before Armageddon hit their companies -- and investors' portfolios. Here's some prominent cases.