AIG Looking For Cash

Today will go down as probably one of the busiest Sundays in the business world ever.  Merill Lynch is seeking fiscal stability by being acquired by Bank of America; Lehman brothers seems on the verge of banruptcy, and insurer AIG is having problems as well.  Quoting the Wall Street Journal (subscriber link):

Insurer American International Group Inc., succumbing to relentless investor pressure that drove its shares down 31% on Friday alone, is pulling together a survival plan that includes selling off some of its most valuable assets, raising more capital and going to the Federal Reserve for help, people familiar with the situation said.

The measures are aimed at staving off a downgrade by major credit-rating firms. AIG executives worried that such an action would set off a chain reaction that could be fatal to the firm. The insurer, which has already raised $20 billion in fresh capital so far this year, was seeking to raise an additional $40 billion to avoid a downgrade.