Run from American International Group

American International Group (AIG), a global insurance and financial services company, is an big trouble. New York state Attorney General Eliot Spitzer is investigating AIG for possible fraudulent accounting practices and other shady business practices.

In response to the investigation the stock has collapsed from $73.12 on February 11, 2005 to $51.91 on April 8, 2005. There is no way to know how the investigation will end and the resulting cloud of uncertainty is not good for the stock price.

AIG is on the downside and should be avoided.