by Calculated Risk on 9/11/2009 04:09:00 PM

While we wait for the FDIC ...

From Grant McCool at Reuters: U.S. probes AIG executives-law enforcement source

U.S. investigators are probing the former head of American International Group Inc's Financial Products unit, Joseph Cassano, and other executives for securities fraud, a law enforcement source familiar with the case said on Friday.

The source said that a grand jury may be impaneled this month in New York to consider potential charges that executives failed to disclose the value of toxic assets to the bailed-out insurance company's outside accountants and shareholders.

And, coincidentally, the S&P 500 is at about the same level as on 9/11 - eight years ago.

Click on graph for larger image in new window.

The first graph shows the S&P 500 since 1990.

The dashed line is the closing price today.

The S&P 500 is up 54% from the bottom (366 points), and still off 33% from the peak (522 points below the max).

The S&P 500 first hit this level in February 1998; over 11 years ago.

The second graph is from Doug Short - Instead of comparing the markets from the peak (See: the Four Bad Bears), Doug Short matched up the market bottoms for four crashes (with an interim bottom for the Great Depression).

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.