According to a REUTER report, AIG management knew of possible problems with CDS (credit derivative swaps), and excluded one key person from discussions because there was concern that that person might polute the process of writing some CDS contracts that were to topic of the discussion.

Few excerpts from reuters article follow:

American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz) knew of potential problems in valuing derivatives contracts, known as credit default swaps, long before questions about the risky transactions caused its stock to plummet, the Wall Street Journal said, citing documents released by congressional investigators.

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A federal criminal probe is investigating how candid AIG executives were with investors at a December 2007 investor conference and whether executives at AIG's financial-products unit, which sold derivatives contracts, misled AIG's outside auditor last fall, the [WSJ] Journal said.

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