American International Group Inc. has picked David DeMuro, the former head of compliance and regulation at Lehman Brothers Holdings Inc., as its new head of compliance and regulatory affairs.

DeMuro, expected to start at AIG next week, will be working for his former boss from Lehman, Thomas Russo. The former chief legal officer at the now-failed Wall Street bank, Russo this year was appointed as the government-controlled insurer’s general counsel. DeMuro will be AIG’s deputy general counsel. AIG confirmed DeMuro’s appointment in a memo to staff  Tuesday evening. The company also named a current employee, Karen Nelson, as its chief compliance officer. Nelson, who joined AIG two years ago, had been acting chief compliance officer since January.

AIG was bailed out by the U.S. government the same week in September 2008 that Lehman Brothers failed.

DeMuro worked at Lehman for more than 20 years, including 10 as head of global compliance and regulation. After Lehman Brothers filed for bankruptcy protection in September 2008, DeMuro briefly worked at Barclays Capital, which took over Lehman’s investment banking business. In 2009 he joined law firm O’Melveny & Myers LLP in New York, where he’s been senior counsel.

Reached at his office on Tuesday, DeMuro declined to comment.

A spokeswoman for O’Melveny & Myers said: “We were glad to have Mr. DeMuro at the firm, and we wish him great success.”