The Wall Street Journal Saturday reported that the U. S. has shut down a criminal investigation initiated in relation to a financial implosion at American International Group Inc. two years ago without filing any charges.

The Justice Department and civil investigators from the Securities and Exchange Commission were probing into the comments made in 2007 by Cassano and other AIG executives.

They were in search for an evidence to discern whether executives incorrectly represented the value of AIG’s portfolio thereby deceiving investors and AIG's outside auditors in relation to firm's exposure to credit-default swaps, which were tied in part to mortgages.

The investigation was solely targeted on Joseph Cassano, who operated AIG's financial products unit in London, in addition, to Andrew Forster and Tom Athan, the newspaper uncovered in its online edition.

F. Joseph Warin, an attorney for Cassano, in his e-mailed statement posted yesterday told, “The large group of federal agents and prosecutors was diligent and professional throughout the investigation, and our client is grateful that they did their jobs by following the facts to the end,” Warin said.

The loss nearly landed the Company into bankruptcy, which would have resulted in a huge systemic crisis. Moreover, exacerbate the credit crisis that followed the fall of Lehman Brothers earlier that month.