Why Did the Fed Draw the Line at Lehman?

This article sums it up pretty well. First off, the Fed was using powers granted to it after the Great Depression when it backed the Bear Stearns deal - and now when it's (effectively buying) AIG. So, why did they skip Lehman? It looks like the Fed was prepared for Lehman's demise and had been planning some contingencies, whereas it was completely taken off guard by AIG's problems. Also, AIG has short-term liability held by many small institutions and mutual funds, etc. that would hurt ordinary citizen's pocketbooks. The Gov't can - and probably will - sell off AIG stock in the future (stock that the taxpayers own), but the hope is that they can hold out for a higher price and maybe make some money.

Now, we're down to JP Morgan and Goldman as the only two independent investment banks left (and WaMu may be the next to go) (note: I'm not clear on the distinction btwn a "commercial" and "investment" banks - but there is a difference .... UPDATE: here is an explanation)

BUT - Consumer Prices fell .1 % and Oil was down. Does that mean things are going to look up? Doubt it.

Trying times.