How close did AIG (NYSE: AIG) executives come to being criminally charged in connections with a whole raft of credit defaults swaps (CDS news) that pushed the company to the brink of solvency?

The focus of the investigation was Joseph Cassano, who headed the London-based Financial Products unit, and colleagues Andrew Forster and Tom Athanother. At one point, prosecutors seemed ready to bring evidence before a grand jury. After meeting with the targets of their probe, however, prosecutors obtained new information about various disclosures to AIG senior executives and AIG's outside auditor, PricewaterhouseCoopers (PwC news).

It's unclear exactly what these disclosures were. They may not put PwC in a flattering light. The decision not to prosecute AIG executives may disappoint some that want people to be held criminally responsible for the mess. The investigations into other companies continue. 

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