It turns out AIG (AIG) Financial Products might have had other problems. The former head of the unit has been embroiled in a troubling controversy with two female vice presidents, who have sued the firm, charging that they were fired after complaining about a "boys club" atmosphere and alleging bias against older women.

The litany of charges makes for uncomfortable reading. They say their bosses misled them about the existence of a salary cap, paid males and younger employees more for comparable work. They also allege that former Financial Products head, Joseph Cassano once said he did not want any employees who looked like his aunt, according to Reuters. One of the plaintiffs was 56 when she was fired after more than 21 years. The other was 60 when she was fired in October 2008. AIG denies any bias.

Cassano's lawyer said the unit "had many capable women at all levels, including in senior management, who thrived under Joe's supervision, including these plaintiffs." He also released emails from both women to Cassano thanking him for bonuses and from Taylor in 2008 thanking him for opportunities. We'll just have to see how this plays out. Such incidents tend to be quite complex at all levels. My sense is that it will not make it to trial. 

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