AIG Again

From the FT ($$):

A bigger restatement is likely at American International Group after an internal investigation by lawyers uncovered additional problems in the insurer's accounting.

Last month, AIG said it expected that inaccurate financial reporting could reduce its book value by up to $1.7bn (GBP 887m). However, the scope of accounting problems outlined in a report by Simpson Thacher and Paul Weiss, indicates that figure is low, according to people close to the investigation.

I still have my equity positions from Thursday morning. The stop was broken and quickly recovered late Friday so I treated it as a washout and just reset the stop. I expect to get stopped out at the open now.

This news seems pretty bad for AIG but might not take the market down with it since the story is getting old. It is funny how the news cascades out of these large companies over time. Once the investigators are in, there are always more troubles to be found.