Have you complainers even read the terms of the loan? (yes, loan)
Basically, the Fed agreed to loan AIG up to $85+ 850bps. (!) That's about 11% interest. And in exchange, AIG gave the Fed 80% of the company - for keeps. AIG common and preferred get nothing, bonds get pennies on the dollar.
AIG has about $1 trillion in assets. As I understand it, the Fed just received claim to about $800 billion of (albeit illiquid) assets in exchange for LOANING AIG $85 billion. Not to mention that because AIG remains a going concern, the stock will likely appreciate over time as we come out of this mess.
In summary, this is no bailout. No taxpayer money has gone out the door. The loan is secured by the assets of AIG, and the creditor (the Fed) now controls the company, and has authority to cancel any dividends and force asset sales to repay the loan. This is about as safe a loan as I can imagine. If anything, the Fed/Treasury will make a profit on this one.
I don't see this as a bailout of anyone but the American people and economy. Not only was this necessary to prevent some MAJOR carnage due to unwinding of AIG's deeply intertwined derivatives, it probably will turn out to be a gain for the Fed/Treasury.