by Calculated Risk on 9/14/2008 09:17:00 PM

Wow. The wild ride continues ...

From the WSJ: AIG Scrambles to Raise Cash, Talks to Fed

AIG turned down a capital infusion from a group of private-equity firms because it would have effectively given them control of the company ... chairman and chief executive, Robert Willumstad, took the extraordinary step of reaching out to the Federal Reserve for help.

The details of the AIG restructuring will probably be released late tonight or early tomorrow morning. It's unclear what the Fed can or will do.

Apparently the Fed will expand its lending facilities tomorrow morning, accepting more securities including equities. The Fed will probably make an announcement in the morning.