Worries at Dynegy, Mirant Punish Energy Stocks

Merchant energy stocks have settled into another day of sinking, buried by more accounting controversies.

Atlanta-based Mirant (MIR Quote) revealed Monday that it has become the latest industry player facing questions from the Securities and Exchange Commission. Various probes of the industry's business and accounting practices over the past year have helped change the sector from one of Wall Street's favorites to one that most investors can't flee fast enough.

Mirant attributed the regulatory probe to minor accounting discrepancies the company disclosed last week, saying the questioning amounted to business as usual in this beleaguered industry. ...