Paul Kedrosky: Notes from Fed Conference Call Tonight

The Federal Reserve held a conference call for reporters tonight, and here (via Dow Jones) are some bullet points on the AIG bridge/bailout:

The market was viewed as better able to handle a Lehman bankruptcy than an AIG one. The latter was more complex, and more likely to touch consumers.
The collateral includes the stock of the almost all of the company's regulated units; these will remain regulated.
All of the companies businesses will continue operating as normal.
The Fed can veto any AIG asset sales and purchases as well as dividend payments.
The government plans to replace senior management and keep the company's board of directors in place for now.
The loan is designed to buy AIG's new management time to meet its obligations and continue running the firm. Any amount drawn down will carry an interest rate of three-month Libor plus 850 basis points.
The Fed expects the loan to be repaid through asset sales, although the company could decide to pay it down through revenue or even a full liquidation if it chooses.