Some details are emerging here - sounds like AIG will be placed into a conservatorship in return for a massive bridge loan. AIG has continued to reiterate that they are well collaterlized, but as issue is liquid capital to meet requirements. The bridge loan will enable to AIG to conduct an orderly liquidation to meet capital requirements.

We'll point out, though, that this loan will essentially wipe out all shareholders - not sure of the details yet, but likely that the gov't will look for that in return for any deal.