Wall Street Roundup: Pension inquiry plea, Lehman fallout for one Californian

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AIG exit. The board of American International Group is set to meet later Wednesday to devise a plan for the government to quickly exit its stake in the company.

Wall Street layoffs. The hedge fund firm DE Shaw is making big cuts to its operations after investors pulled out cash -- becoming only the latest Wall Street firm to announce layoffs. Morgan Stanley, which recently instituted a hiring freeze, had its earnings estimates reduced.

Pension probe. The former New York state comptroller, Alan Hevesi, looks set to plead guilty in a corruption probe of the state pension fund that has already ensnared many officials close to Hevesi.

Lehman fallout. The chief executive of developer SunCal, which received lots of funds from Lehman Brothers, may be personally on the hook for losses at the company as Lehman seeks money for its creditors.

-- Nathaniel Popper