Exhibit 1: AIG 5 minute price chart (so far today) aka up and down like the proverbial tart's knickers:


Exhibit 2: AIG daily volatility (238%) shooting up

AIG's 30 day volatility (ie composite implied volatility on all its options) is now 446% compared to a historic reading of 121%. There are no obvious outcomes to its capital raising needs is what this chart's saying.

NY state may relax its rules for the firm and AIG may get that $40b Fed loan but if you hold the equity it is very, very hard to envisage anything other than a longer term solution that is severely dilutive.

Failing a new line in the Federal Reserve sand.