AIG and Credit Support Default

It is reasonably well known in the derivatives markets that a lot of AIG FP's CSAs have collateral on downgrade clauses. Specifically AIG FP has to post more if the AIG parent company is downgraded. The parent is on downgrade watch. Market gossip has it that the amount of collateral required is substantial, probably (irresponsible rumour has it) more than $10B. So AIG will borrow from the FED (or as FT alphaville has it, give a bridge loan to itself) and pledge it straight back to, err, the FED's clients and their peers. Seen that way it makes complete sense for the FED to lend...