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?