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. Get the full story »