AIG - Where did the cash go?

"Regulators are now looking into whether AIG knew it was coming in for
major losses months ago -- losses that weren't apparent on the
company's balance sheet."

http://www.npr.org/blogs/money/2008/10/tracking_aigs_bailout.html

Um. Gee. Yes. Hey, regulators, there's this thing that's been around a
while now called "off-balance sheet" items.

http://en.wikipedia.org/wiki/Off-balance-sheet

Companies have been pushing the limits on those for years. AIG is just
one of the more extreme examples.