Uh, oh. Looks like more bad news for AIG. Federal prosecutors are looking into seating a Grand Jury. Here is the big news in The Wall Street Journal.

Federal prosecutors, capping an 18-month investigation, are
preparing to impanel a grand jury in Brooklyn, N.Y., to consider an
indictment of a former senior American International Group Inc. executive, according to people familiar with the matter.

The Justice Department and the Securities and Exchange Commission
have been investigating whether Joseph Cassano, whose AIG Financial
Products unit nearly brought down the insurer a year ago, committed
securities fraud in allegedly misleading investors by overstating the
value of mortgage-related contracts and failing to disclose material
facts about them to AIG's outside auditor, the people said.

There has been only one other major criminal case to come in the wake of the financial meltdown. A trial starts later this month for two Bear Stearns fund managers accused of lieing to investors. Shouldn't there be more of these?

The Financial Crisis Inquiry Commission is scheduled to meet for the first time on September 17, 2009 in Washington. The commission was established by Congress to investigate the causes of the financial crisis and report to the public on what they learned.

In a news report this week the Commission's new chairman, former California State Treasurer Phil Angelides, made some important comments.

"The purpose of this report is to lay out ... what in fact occurred
so that everyone can learn the lessons of this calamity," Angelides
said in a recent interview.

The former California state treasurer promises a "thorough,
no-holds-barred inquiry," including public hearings. But he does not
want to overwhelm the public with a jumble of facts, even though he
acknowledges the facts are "extraordinarily" important.

Something to keep an eye on. The Congress recently gave the Commission an initial budget of $8 million for their investigation. That is no small piece of change. Hopefully the commission will tell the public who got us into this mess.