There will be no criminal prosecutions of the people who created the clusterf%$# that took down AIG:

Federal prosecutors will not bring criminal charges against current and former American International Group Inc. executives for their role surrounding financial contracts that nearly brought down the insurer about two years ago, according to people familiar with the matter.

The decision brings to a close a criminal investigation that, while mostly under wraps, was widely followed. The September 2008 bailout of AIG was one of the biggest and most shocking of the financial crisis, as trading by a noninsurance unit brought down one of the most iconic financial companies world-wide.

The probe focused on Joseph Cassano, who headed a London-based unit of AIG called Financial Products, people familiar with the matter have said. Other executives at the unit, Andrew Forster and Tom Athan, also were targets of the investigation, these people said.

Seriously, at this point, we should be referring anything with the slightest possibility of conviction to a grand jury for indictment.

Anything else encourages more wrongdoing by the Wall Street boys, much in the same way that Obama’s policy of not prosecuting torturer, but pursuing the whistle-blowers encouraging more torture.