Story 1 from yesterday’s Wall Street Journal:

NEW YORK (Dow Jones)–American International Group Inc. (AIG) shares fell nearly 20% Thursday as an analyst said there’s a significant chance the stock’s value will eventually drop to zero.

Analyst Joshua Shanker estimated a 70% chance that AIG’s shareholder equity will be worthless due to the potential for more losses on European credit default swaps, as well as the hit to its long-term prospects because of its selling parts of its business cheaply in order to pay off its debt to the U.S. government.

An AIG spokeswoman declined to comment on Shanker’s analysis.

AIG shares have lost more than half their value under steady selling pressure since the stock underwent a 1-for-20 reverse stock split last week. While reverse stock splits are often meant to make shares more attractive, in AIG’s case it has given investors who are pessimistic about AIG’s prospects more room to drive shares lower.

AIG shares declined 19% in recent trading, to $10.59. When the stock split went into effect after AIG shareholders approved the move on June 30, the stock was priced at $23.20.

Story 2 from today’s New York Times:

Seeking to avoid the public furor that erupted last spring, the American International Group has been quietly seeking approval from the new federal compensation czar to pay a total of $2.4 million dollars in bonuses to dozens of its senior executives, The New York Times’s Eric Dash reported.

Officials at the embattled insurance company, which has received more than $170 billion in taxpayer money, have sought meetings with Kenneth Feinberg, the pay czar, to review the payments for 40 of its highest ranking employees, The Times said, citing individuals briefed on the matter.

Mr. Feinberg has been tasked with approving the pay for the 100 highest paid employees, but he also can also weigh in on other matters if a company requests.

Seeking to avoid the public furor that erupted last spring, the American International Group has been quietly seeking approval from the new federal compensation czar to pay a total of $2.4 million dollars in bonuses to dozens of its senior executives, The New York Times’s Eric Dash reported.

Officials at the embattled insurance company, which has received more than $170 billion in taxpayer money, have sought meetings with Kenneth Feinberg, the pay czar, to review the payments for 40 of its highest ranking employees, The Times said, citing individuals briefed on the matter.

Mr. Feinberg has been tasked with approving the pay for the 100 highest paid employees, but he also can also weigh in on other matters if a company requests.