and the AIG thing smells to high heaven.
HuffPo says this about Cole's role in AIG:
"Cole and his high-powered law firm, Bryan Cave, were paid $20 million by AIG as part of negotiated settlements with the Justice Department, Securities and Exchange Commission, and former NY State Attorney General Eliot Spitzer, over bid-rigging charges and accounting irregularities involving the insurance giant.
During his time at AIG, the firm dangerously ramped up its sale of credit-default swaps (essentially insurance) to investment banks, essentially betting big that the housing market wouldn't collapse. Those risky moves were undertaken at AIG's Financial Products division -- the head of which, Joseph Cassano, dubbed "The Man Who Crashed The World" by Vanity Fair's Michael Lewis, was investigated by federal prosecutors who declined to bring criminal charges in the end.
But Cole became more complacent over time, not effectively overseeing the firm, allowing AIG officials to review his quarterly reports to the SEC and declining to monitor AIG-FP despite increasing signs that that division was veering out of control, claim these former employees. This despite the fact that AIG-FP admitted committing securities fraud in 2004, only avoiding criminal prosecution after paying an $80 million fine and installing Cole as an independent monitor.
"It was either incompetence, negligence or fraud and I have nothing to indicate that it was fraud," says the ex-staffer. "
http://www.huffingtonpost.com/2010/12/23/james-cole-obamas-justice_n_800740.html