Hi,

I see a book value of 540 and a proforma book value of 40.

So we should look at the proforma book value??

What does this means in AIG financial statement?

Oh I understood already.

The proforma value is after paying off US Treasury equity which is in
the form of WARRANTS. And it is worthed more about 79% of AIG company.
Our common shares are only worthed 20% of AIG u see.

AIG had this WARRANTS for US TREASURY at $3.75. So once this stock
goes above $3.75 and above, they have to pay the US government the
proceeds above $3.75 too!.

That is why I think this stock max price is at 75. The US government
may want it to go higher than that.

So AIG has to keep paying the US TREASURY back their money. Thus
Credit Suisse thinks it is impossible for AIG to step on its own feet
any more.

However, I think CS is so wrong. AIG will continue making profits.
Possible $4bln profit per annum soon and full profitability by 2013 of
$10bln a year. They will be able to easily pay back all the government
money.

On Nov 6, 4:46 pm, fxchat <theforexchatr...@gmail.com> wrote:

also of interest on 10K form is further description of how AIA and
ALICO deal will go.  Fed will get 80% controlling stake of those IPO's
and in return, their debt with Fed will be reduced by 25 Billion.
However! if the IPO's fetch more than 25 Billion. AIG GETS TO KEEP ALL
PROCEEDS BEYOND 25 BILLION. which would really help.  So much depends
on the improving economy.

I think Benmosche should ask the FED to take on (forgive) another 13
billion of their debt as well, since they FORCED AIG to unnecessarily
pay PAR to the banks for CDS contracts.  Even with M2M in place, they
should never have paid that much.  They would have only paid 60 cents
on the dollar.

On Nov 6, 4:09 pm, fxchat <theforexchatr...@gmail.com> wrote: