Several more employees are leaving the financial unit that brought American International Group Inc to its knees last year.

The resignations are in addition to the “handful” of senior AIG Financial Products executives who have already given notice. However, we could not quantify the total number of departures.

To date, AIG said the situation at the financial products unit remains “manageable,” inspite of so many people leaving. But if too many employees quit, it could be disastrous for AIG. If it is disastrous for AIG, it will be so for the U.S. taxpayers who are the insurer’s majority owners. “Too Big To Fail Syndrome” is clearly operating here.

The financial products division incurred heavy mark-to- market losses on credit default swaps, a type of derivative that guarantees underlying debt against default, after the downturn in the U.S. housing market. It has left AIG severely short of cash. The U.S. government had to step in with a rescue to bail out AIG.