Hopes that some sort of bridge loan can be arranged between the Fed and AIG before the firm is forced into bankruptcy as soon as tomorrow. The White House has gone mum on commenting on the markets, suggesting to me that something is in the works. Look for what ever arrangement is made to be very short-term and very highly collateralized. The Fed have gotten equity in firms in the past for loan guaranties if my memory serves, so look for the Fed to insist on some upside for the beleaguered taxpayer and not just risk.
Morgan Stanley is set to pre-announce this afternoon, CNBC reports.