Did anyone think the storm had passed for AIG? You might have been tempted, after all it has taken up to $180 billion in government bailout funds. But the price of stability is even higher apparently. AIG shares, which have dropped more than 50 percent since that 1-for-20 reverse stock split this month, tanked again. It fell 28 percent Thursday to trade just below $10 a share.

Put option activity has been very strong. Reuters notes the put volume was eleven times normal levels. The instigator may have been Citigroup analyst Joshua Shanker, who told clients "investors have come in on the short side in anticipation of future financial losses." He says there is a 70 percent chance that the value of the equity is zero.

For more:
- here's the Reuters article

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