Did AIG's London Office Lose Half A Trillion Dollars?

UPDATE, here

To quote Paul Newman:

Who are those guys?
-Butch Cassidy and the Sundance Kid

This is quite the story, from ABC News:

Ground zero for AIG's spectacular implosion, which has soaked up more federal bailout money than any other entity, appears to have been a small London branch office that may have lost nearly half a trillion dollars in bad deals.

The disastrous deals were built up in a decade and, when the crisis hit, the man who ran the unit for the last eight years retired after making $280 million for himself and leaving with a $1 million-a-month consulting contract.

The struggling New York-based insurance giant has avoided collapse with the massive infusion of $160 billion in taxpayer money....
...Britain's serious fraud office and U.S. regulators are combing through the records of AIG's Financial Products Group, formerly located on the fifth floor of an office building in London's Mayfair section....MORE

HT: DealBreaker who comments "Just... wow."