American International Group Inc. (AIG) Likely To Remain Weak On Charts

American International Group Inc. (NYSE: AIG) slipped over 5% to $32.57, after dropping to even lower levels after a gap down opening on Tuesday. The insurer American International Group Inc.’s (AIG) former reinsurance unit, Transatlantic Holdings Inc. (NYSE: TRH), filed a demand for arbitration against American International Group Inc. (AIG) for the losses of more than $350 million from securities lending.

The arbitration puts clouds over American International Group’s (AIG) future outlook and profits, in case it needs to provide for such losses as claimed by Transatlantic Holdings Inc. (TRH). The stock, meanwhile, continues to trade below its long term support line of 200 day MA.