Following The Slog’s earlier posting about The Prudential Madness of Harvey McGrath, there has been a very queer development.

Make of this what you will: the Serious Fraud Office (SFO) has dropped its investigation into US Group AIG’s activities in the UK. The SFO has a track record of finding nothing wrong in the activities of people like Bernie Madoff, Fingers Levy, Saudi princes and others too numerous to mention.

But now, a little bird that wore a helmet for a living once upon a time alleges that, while unrelated to the US decision to drop charges against former AIG staffer Cassano, the decision was not unrelated to possible adverse effects upon the proposed takeover of AIG’s Asian unit by Prudential.

What can this all mean?